"Avoidance and Obstruction of Investigations Through Influence of the Department of Government Efficiency"
The U.S. Democratic Party has alleged that Elon Musk, CEO of Tesla, has avoided more than $2 billion (approximately 2.877 trillion won) in financial liabilities for his companies through activities involving the Department of Government Efficiency (DOGE).
According to U.S. business media outlet CNBC on April 28 (local time), Democratic members of the U.S. Senate Permanent Subcommittee on Investigations released a report containing these claims on the same day.
The Democratic Party criticized Musk, the world's richest person, for using his influence to evade oversight, obstruct investigations, and attempt to conduct lawsuits on his own terms and under his own directives.
According to the report, as of January 20 of this year, the date of President Trump's inauguration, Musk and his companies were facing at least 65 actual or potential sanctions from 11 federal agencies. Of these 65 cases, the report estimated that potential financial liabilities for Musk and his companies arising from 40 actions by eight agencies amounted to at least $2.37 billion.
This includes $1.19 billion related to allegations that Tesla made statements about its Autopilot and self-driving technologies that could be misleading. In addition, Neuralink, a neuroscience startup, faced a $1.59 million fine for violating animal welfare laws during experiments on monkeys and pigs, as well as potential liability of $281 million for allegedly making false statements about the risks of its products.
The report stated, "Many of Musk's decisions appear to have the common goal of advancing his own interests and avoiding anything he perceives as hindering those interests," adding, "The full extent and scale of the benefits Musk derives from his current position may never be fully revealed, and that may be intentional."
The report also said, "The purpose of this analysis is to estimate the financial liabilities that Musk and his companies could avoid through federal workforce reductions and exerting influence over federal agencies," and argued, "Musk's position enables him to evade oversight, obstruct investigations, and eliminate lawsuits at any time."
White House spokesperson Steven Cheung strongly denied these allegations, stating, "Musk has never used his position for personal or financial gain. These claims are completely false and defamatory."
Meanwhile, on April 22, following Tesla's earnings announcement, Musk stated that most of the main tasks of the Department of Government Efficiency had been completed and that starting next month, he would reduce his government-related duties and devote more time to managing Tesla.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
