SpaceX and Musk under federal scrutiny for failure to comply with safety protocols

Investing.com — SpaceX, the rocket company owned by Elon Musk, is under scrutiny for failing to comply with federal reporting protocols designed to safeguard state secrets, the New York Times (NYSE:) reported Tuesday. This includes not disclosing some details of Musk’s meetings with foreign leaders, according to people familiar with the company and internal documents.

The company’s reporting practices, particularly those of Musk, SpaceX’s chief executive, have prompted at least three federal reviews. These reviews were initiated by the Department of Defense Office of Inspector General, the Air Force, and the Pentagon’s Office of the Under Secretary of Defense for Intelligence and Security. The Inspector General’s review began this year, while the Air Force and Pentagon reviews began last month.

The Air Force recently denied Musk high-level security access due to potential security risks associated with the billionaire. Several allied nations, including Israel, have expressed concern about the possibility of Musk sharing sensitive data with others, defense officials said.

Internally, SpaceX has a team responsible for ensuring compliance with national security regulations. Some team members have complained about the company’s lax reporting to the Defense Department’s Office of Inspector General and other agencies. These complaints date back to at least 2021, according to four people familiar with the company. From 2019 to 2023, SpaceX received at least $10 billion in federal contracts from the Pentagon and NASA, making it a major contractor.

This article was generated with the support of AI and reviewed by an editor. For more information consult our T&C.