Elon Musk’s Companies: A Tale of Purged Regulators and Stalled Investigations
The recent purge of federal employees initiated by the Department of Government Efficiency (DOGE) has raised eyebrows due to its disproportionate impact on personnel tasked with scrutinizing Elon Musk’s business ventures.
FDA Employees Managing Neuralink Investigations Axed
According to Reuters, 20 employees at the US Food and Drug Administration (FDA) who oversaw reviews and applications connected to Neuralink, Musk’s brain-computer interface company, have been laid off. These staffers worked directly on approving clinical trial applications, a key step for Neuralink’s progress.
Although Reuters sources indicate that these employees were not specifically targeted, the downsizing in the medical devices office hinders companies like Neuralink that rely on expedited approval processes. With fewer personnel reviewing applications, approvals could slow or quality standards could be compromised, potentially benefiting companies like Neuralink that seek quicker approvals.
Targeted Layoffs or Coincidence?
The frequency with which regulators overseeing Musk’s companies have been affected by DOGE-driven layoffs has raised questions about potential bias. A New York Times report revealed that at least 11 federal agencies targeted by DOGE cuts have ongoing actions related to Musk’s firms, encompassing 32 investigations and enforcement actions that risk being hindered or even terminated due to staff reductions.
Neuralink: A Company Under Scrutiny
Neuralink has seemingly benefited from the reduction in regulatory oversight. Last month, the Inspector General at the US Department of Agriculture was forcibly removed from her post for resisting her allegedly illegal termination. Notably, she was leading an inquiry into Neuralink’s potential violations of animal welfare regulations in its animal testing practices.
The FDA has also investigated similar concerns. In 2022, an FDA review found "objectionable conditions or practices" in Neuralink’s animal labs, prompting the agency to urge corrective action but ultimately abstaining from issuing penalties.
The FDA and Neuralink have also clashed over human trials. The FDA initially rejected Neuralink’s request in 2022 due to safety risks, later permitting limited trials in 2023. In 2024, the FDA granted Neuralink "breakthrough device" status, expediting the review process. Critics argue that this designation undercuts the FDA’s role as a watchdog.
Implications for Regulatory Oversight
The purging of regulators overseeing Musk’s companies raises concerns about the erosion of independent oversight and the potential for companies to evade accountability. The layoffs could create a chilling effect on investigations, allowing companies to operate with less scrutiny.
Transparency and accountability are crucial for ensuring the public’s trust in regulatory bodies and the safety of new technologies like Neuralink’s brain-computer interfaces. The DOGE-initiated layoffs undermine these principles and warrant further investigation to rule out any impropriety or conflicts of interest.
