According to TechFlow, on December 18, the New York Times reported that SpaceX and its CEO Elon Musk are facing at least three federal investigations for repeatedly failing to comply with federal security reporting regulations. The Office of the Inspector General of the Department of Defense, the Air Force, and the Office of the Undersecretary of Defense for Intelligence and Security have launched separate reviews, focusing on Musk's failure to truthfully report sensitive information such as meetings with foreign leaders.
As an important contractor with more than $10 billion in government contracts, SpaceX's internal compliance team has repeatedly complained to the Department of Defense about the company's lax reporting system since 2021. The Air Force recently rejected Musk's application for a high-level security clearance due to potential security risks, and several allies, including Israel, have also expressed concerns about the possible leakage of sensitive data.
The issue has become more sensitive as Musk was tapped to help Trump streamline federal agencies and participate in Trump's calls with foreign leaders. As SpaceX CEO with a top-secret security clearance, Musk is required to report information about his private life and overseas travel to the Department of Defense, but according to people familiar with the matter, he failed to comply with these "continuous review" requirements, including failing to report complete itineraries and medication use.