SpaceX and Musk Under Scrutiny for Violating Federal Security Protocols - NYT

Investing.com -- Elon Musk's rocket company SpaceX is under scrutiny for allegedly failing to comply with federal reporting protocols designed to protect state secrets. According to a report from The New York Times on Tuesday, this includes the withholding of details regarding some discussions Musk had with foreign leaders, according to the company and individuals familiar with internal documents.

The reporting practices of the company, particularly those of SpaceX CEO Musk, have led to at least three federal investigations. These investigations were initiated by the Department of Defense's Office of Inspector General, the Air Force, and the Pentagon's Office of Intelligence and Security. The Inspector General's investigation began earlier this year, while the inquiries by the Air Force and Pentagon were launched last month.

Due to potential security risks associated with the billionaire, the Air Force has recently denied Musk high-level security clearance. According to defense officials, several allied nations, including Israel, have expressed concerns about Musk's likelihood of sharing sensitive data with others.

Inside the company, there is a team responsible for ensuring SpaceX complies with national security regulations. Some team members have complained about the company's lax reporting to the Department of Defense's Inspector General's Office and other entities. According to four individuals familiar with the company, these complaints date back to at least 2021. From 2019 to 2023, SpaceX received federal contracts worth at least $10 billion from the Pentagon and NASA, establishing it as a significant contractor.