Following a recent Wall Street Journal report, Tesla (NASDAQ:TSLA) may be on the verge of making a disclosure move that would have been unthinkable just a few years ago. With Elon Musk now holding a special government role as head of the Department of Government Efficiency (DOGE), accounting experts argue that Tesla's relationship with the U.S. government may now qualify as a related party transaction under financial reporting rules. This would mean Tesla might need to disclose its government dealings in a way typically reserved for companies bailed out by federal fundsexcept in this case, it's not the government controlling Tesla, but rather Musk's growing influence over Washington. If this designation goes through, it would be a first-of-its-kind financial statement update, providing a new level of transparency into the extent of Tesla's government ties.

The scrutiny is intensifying after reports surfaced of a potential $400 million State Department order for Tesla Cybertrucks, a deal that was later put on hold. Senator Senator Richard Blum (Trades, Portfolio)enthal (Trades, Portfolio) enthal has raised conflict-of-interest concerns, pointing directly at Musk's dual role as Tesla's CEO and his government position. Tesla has already flagged its transactions with Musk's other ventures, including SpaceX and X, in its filings, but it has yet to disclose the full scope of its business with the U.S. government. Meanwhile, Tesla continues to benefit from lucrative federal EV tax credits and has been the subject of multiple investigations, even as DOGE oversees sweeping agency layoffsincluding within the National Highway Traffic Safety Administration, which regulates Tesla.

For investors, a related-party designation wouldn't necessarily change Tesla's fundamentals, but it could open the door to new layers of scrutiny. Transparency cuts both waysif Tesla is doing significant business with the government, investors will want to know whether these deals are driving long-term growth or introducing new regulatory risks. As the SEC and accounting authorities weigh in, this could shape up to be one of the most closely watched disclosure debates in recent history.