The Senate Permanent Subcommittee investigated Elon Musk could avoid at least $2.37 billion in potential legal and financial liability as his impact on government agencies and the federal workforce cuts from the government's government efficiency ministry.
The 44-page memo claims that through Doge, Mr. Musk and his company will gain “an unparalleled competitive advantage in the worst insider trading” and “complete access to confidential and sensitive data in the United States.”
"The thread connecting many of Mr. Musk's decisions seemed to be self-inculcated, avoiding obstacles he believed to promote his interests," the memorandum said. "Mr. Musk's position may allow him to evade supervision, derail investigations, and, in his choice, dissipate the lawsuit under his terms and command."
Musk and his company were subject to practical or potential actions by at least 11 different federal agencies at the Trump inauguration.
Ranking member of the Subcommittee D-Conn. Senator Richard Blumenthal, who sent letters to five Musk-owned companies (SpaceX, Tesla, Tesla, Neuralink, Boring Company and XAI), faces federal oversight actions requiring everyone to provide information about all federal investigations, litigation or regulatory proceedings; detailed explanations are measures taken to prevent Musk's work from affecting these issues; and all non-public agent information on matters that may be handed over to Musk or the company.
"Through extensive shooting, cutting funds and disruptive instructions, by exhausting and shrinking oversight agencies, Mr. Musk's company can be kept away from legal liability," Blumenthal wrote.
Musk's company and Doge representatives did not immediately respond to NBC News' request for comment on the memo.
White House Communications Director Stephen Cheung said in a statement that Musk “never used his position to gain personal or financial benefits, otherwise any claim would be totally wrong and slanderous.” He added that, speaking of Blumental, “Dick is clearly suffering from a debilitating and unassured case of Trump’s dangerous syndrome, which has wilted his brain so much that he will continue to peddlers like a record of service fabricated in Vietnam.”
The memo said Musk's alleged $2.37 billion potential financial exposure from federal investigations and lawsuits covers several agencies, including alleged racial harassment at the Tesla factory in Fremont, California; SpaceX's alleged discriminatory recruitment practices; alleged false or misleading statements about autonomous driving and autonomous driving capabilities, and alleged failure to disclose solar panel risks to shareholders through Tesla; and alleged misleading statements about rusk and Animal Felfare Act's violation of Neuralink.
The memo calls on Trump, executive departments and regulatory agencies to take “coordinated action to address Elon Musk's threat to the integrity of federal government,” including response to Congressional requests related to Musk's “federal entanglements,” directing all relevant agencies to review contracts and communications with Musk's to determine whether appropriate measures were or are in place to prevent undue influence, and Initiating independent audits of all major government contracts and awards to Musk.
"No one, no one, no matter how prominent or rich, is beyond the law," the memorandum concluded. "Apart from decisive, direct and collective action, any bystander far less than the modern oligarchs-public power in the hands of private people."