Sen. Elizabeth Warren (D-Mass.) on Tuesday sharpened her attack on Tesla Inc. (NASDAQ:TSLA) and SpaceX CEO Elon Musk, citing a New York Times investigation that found he controls a secretive web of more than 90 companies in Texas and linking that structure to his alleged interest in weakening federal corporate-disclosure rules.
Warren Links Musk Network To Secrecy Fight
In a post on X, the Massachusetts Democrat wrote, “Reports indicate Elon Musk controls a secretive network of over 90 companies and entities so he can hide how he spends his money,” adding, “No wonder he wanted the Trump admin to ‘look into’ the Corporate Transparency Act, which would have regulated those companies.”
Warren was referring to a February New York Times report later cited in a March 30 letter from Warren, Sen. Sheldon Whitehouse (D-R.I.) and Rep. Maxine Waters (D-Calif.) to Treasury Secretary Scott Bessent.
That letter said Times reporting showed Musk quietly operated at least 90 private companies in Texas and used limited liability entities that disclose little about ownership to mask spending, including support for Donald Trump’s 2024 reelection effort. The lawmakers said the network appeared to be concentrated in Texas but was tied to Musk’s broader business empire.
Democrats Press Treasury Over Sudden Shift
That reporting helped trigger a Democratic probe into whether Musk influenced Treasury’s decision to stop enforcing key parts of the Corporate Transparency Act, a bipartisan anti-money-laundering law requiring many businesses to report beneficial ownership information to FinCEN, aka the Financial Crimes Enforcement Network.
Warren, Whitehouse and Waters asked for records showing whether Musk pushed for the suspension after he responded to a user complaint on X by saying he could “look into it.” They argued he may have stood to benefit personally because the law could have forced greater disclosure around entities like those described in the Times investigation.
Treasury announced on March 2, 2025, that it would not enforce penalties under the law against U.S. citizens or domestic reporting companies, calling the rule burdensome and saying it would narrow the requirement to foreign entities. Reuters later reported Treasury formally moved ahead with that approach.
Scrutiny Grows Around Musk’s Government Reach
Benzinga reached out to SpaceX and Tesla for comments and clarification on Warren’s alleged claims and did not hear back at the time of publishing.
The allegation from Warren fits into a broader Democratic campaign to examine Musk’s conflicts of interest as he wields influence in a Trump administration that oversees agencies that regulate his companies.
Photo Courtesy: Bryan J. Scrafford on Shutterstock.com
Recent Comments