Elon Musk's companies could avoid over $2.3 billion in potential fines and other liabilities thanks to Musk's unusual government position as the head of DOGE, said a memo yesterday from the Democratic staff of the Senate Permanent Subcommittee on Investigations. The estimate is said to include potential liability from federal investigations, litigation, and other regulatory actions.

"Since his appointment, Mr. Musk has taken a chainsaw to the federal government with no apparent regard for the law or for the people who depend on the programs and agencies he so blithely destroys... Mr. Musk's position may allow him to evade oversight, derail investigations, and make litigation disappear whenever he so chooses—on his terms and at his command," the 44-page memo said.

The subcommittee's investigation found that as of January 20, "Musk and his companies were subject to at least 65 actual or potential actions by 11 different federal agencies." The memo said the subcommittee "was able to estimate potential financial liabilities for 40 of the 65 actions by eight federal agencies," resulting in the $2.37 billion total.

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Tesla managed to hold onto profitability in the first quarter of 2025—but only just. Earlier this month, the automaker reported double-digit declines in both production and delivery numbers thanks to the impact of CEO Elon Musk's central role in the Trump administration, a global trade war, and an increasingly outdated and tiny product lineup. Yesterday, we saw the true cost of those factors when Tesla published its profit and loss statement for Q1 2025.

Total revenues fell by 9 percent year over year to $19.3 billion in Q1. Selling cars accounts for 72 percent of Tesla's revenue, but these automotive revenues fell by 20 percent year over year. Strong growth (67 percent) in Tesla's storage battery and solar division helped the bottom line, as did a modest 15 percent increase in revenue from services, which includes its Supercharger stations, which are now opening to other car brands.

But Tesla's expenses grew slightly in Q1 2025, and more importantly, its profitability shrank. Income from operations fell by two-thirds to $399 million, and its operating margin—once as high as 20 percent—has fallen to just 2.1 percent. After the third successive fall in a row, the company will start to lose money on every car it sells if this trend continues.

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