Musk's Illegal Power Grab: Blumenthal Demands Answers from Billionaire’s Companies On Glaring Conflicts Of Interest And Data Heist

[WASHINGTON, D.C.] – U.S. Senator Richard Blumenthal (D-CT), Ranking Member of the U.S. Senate Permanent Subcommittee on Investigations (PSI), today demanded that six companies owned and controlled by unelected billionaire Elon Musk preserve all documents and answer questions on their role in Musk’s potential violations of ethics requirements and federal law. In letters to Tesla, SpaceX (owner of Starlink), X, xAI, The Boring Company, and Neuralink, Blumenthal demanded answers from each company’s general counsel on steps they are taking to address Musk’s significant conflicts of interest and possible use of federal data as he exploits his position for financial gain, endangers Americans’ sensitive information, and consolidates power.  

Blumenthal continued, “Mr. Musk and his team have reportedly obtained unparalleled access to sensitive government data in the two weeks since DOGE was established. Since assuming his role, Mr. Musk has seized control of a sensitive Treasury Department data and payment system, potentially giving him the ability to control which payments the Treasury Department makes and almost certainly providing him access to nonpublic information pertaining to Tesla’s competitors—such as sensitive information regarding government contracts.” 

Mr. Musk’s staff have gained access to the Office of Personal Management’s (“OPM”) Enterprise Human Resources Integration and USAJOBS, giving him the ability to access the personally identifiable information of not just federal employees, but anyone who has ever applied for a federal government position.[6] He has directed the heads of every agency of the federal government to email the chief of staff of OPM, a former employee of Mr. Musk, with the identities of all federal workers on probationary periods.[7] The reckless haste with which DOGE has forced these sweeping changes may violate the E-Government Act of 2002, the Privacy Act of 1974, and the Administrative Procedures Act, among others.[8]

 Mr. Musk’s access to the payment system at the Treasury Department grants him the ability to influence the system used for tax refunds, Medicare and Medicaid payments, and other services on which hundreds of millions of Americans rely on. Mr. Musk has used DOGE to interfere with or encourage the elimination of federal agencies or programs that his companies, or his competitors, have had direct interest in.[9] This access may violate federal law and may also allow Mr. Musk to gain a competitive advantage in his numerous businesses, including Tesla.[10] He may also have the power to withhold payments or hinder government programs without having to provide any explanation or notice.[11] DOGE’s operations will also provide its employees with substantial information and influence over government contracts and plans that are commercially material to Mr. Musk’s businesses.

 Mr. Musk has also installed former (and, perhaps, current) employees of his companies throughout the federal government.[12] Since gaining unheard-of authority over the Treasury Department’s systems, including potentially access or administrative rights to systems with classified information or significant national security risks, Mr. Musk has provided access to these systems to a group of unvetted software engineers, reportedly ranging in age from 19 to 25, who appear to have interned at, worked at, or otherwise have connections to Mr. Musk’s various business interests.[13] At OPM, new personnel with connections to Mr. Musk include the chief of staff and at least five other senior staff members.[14]

 It is imperative that Congress promptly obtain all information pertaining to Mr. Musk’s unprecedented power grab, including the extent to which the information and influence Mr. Musk has obtained is being used to the commercial benefit of Tesla, and whether Tesla personnel are working on behalf of DOGE.