Elon Musk and His Companies Face $2.37 Billion in Potential Federal Penalties, Senate Report Reveals

Elon Musk and his companies were facing at least $2.37 billion in potential federal fines the day President Trump took office, according to a detailed new report from the Senate's Permanent Subcommittee on Investigations.

The 43-page memo, released Monday by the committee’s Democratic staff led by Senator Richard Blumenthal (D-Conn.), highlights the serious conflict-of-interest risks tied to Musk’s role as an advisor to Trump’s so-called Department of Government Efficiency — nicknamed "DOGE."

Drawing from government records, media reports, and its own research, the report found Musk and his companies were linked to 65 potential or active enforcement actions from 11 federal agencies as of January 20. Of those, 40 casesinvolved financial risks totaling more than $2.37 billion.

Mr. Musk has taken a chainsaw to the federal government with no apparent regard for the law or for the people who depend on it," the memo stated. "The common thread behind many of Musk’s moves seems to be enriching himself and removing anything that slows down his business interests.

Billions in Federal Support at Stake

The memo points out that Musk’s businesses — including Tesla, SpaceX, Neuralink, The Boring Co., and x.AI Corp. — have collectively received over $38 billion in government contracts, loans, subsidies, and tax breaks over the last two decades.

As of last week, SpaceX alone held $10.1 billion worth of active federal contracts.

The report warns that Musk's influence over federal operations could compromise the integrity of government decisions. It urges President Trump and federal regulators to "take coordinated action to address Elon Musk’s threat to the integrity of federal governance."

Musk, White House Push Back Against Claims

White House Communications Director Steven Cheung sharply rejected the report, calling the allegations "baseless" and criticizing Senator Blumenthal directly.

"Mr. Musk has never used his position for personal or financial gain," Cheung said in a statement. "This is just another example of Trump Derangement Syndrome."

In a previous joint interview with President Trump on Fox News, Musk said he would recuse himself from any government matters if a conflict of interest arose. Trump added, "He won’t be involved."

More Investigations on the Horizon

Senator Blumenthal has also sent formal letters to Musk’s companies, including Tesla, SpaceX, Neuralink, The Boring Co., and x.AI Corp., demanding transparency about any pending federal investigations or lawsuits involving them.

The letters specifically asked what internal steps the companies had taken to address Musk’s potential conflicts of interest.

As of now, none of the companies — or the Department of Government Efficiency — have responded to media requests for comment.

Also Read: Elon Musk Reduces DOGE Role to Refocus on Tesla; Stock Soars 7%​