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Elon Musk, SpaceX face federal reviews over security, NYT reports

Published 2024-12-17, 05:08 p/m
© Reuters. FILE PHOTO: SpaceX logo and Elon Musk photo are seen in this illustration taken, December 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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WASHINGTON (Reuters) -Elon Musk and SpaceX face at least three federal reviews over whether they have complied with federal reporting rules aimed at protecting national security, the New York Times (NYSE:NYT) reported on Tuesday.

This is not the first time the security practices of the SpaceX founder have been questioned by the Pentagon.

A 2018 incident in which Musk, who is also CEO of Tesla (NASDAQ:TSLA), smoked marijuana on a live Web show with U.S. comedian Joe Rogan also sparked a security clearance review by the Pentagon.

Such reviews ordinarily occur once instances of a potential infraction come to light, Pentagon officials have said.

The New York Times said the new reviews were initiated by the Air Force, the Defense Department's Inspector General and the undersecretary of defense for intelligence and security. It cited eight people with knowledge of the rocket company and internal documents.

"Elon Musk and his rocket company, SpaceX, have repeatedly failed to comply with federal reporting protocols aimed at protecting state secrets, including by not providing some details of his meetings with foreign leaders," the newspaper report said.

The Air Force and undersecretary of defense for intelligence and security referred queries to the Defense Department's Office of Inspector General. That office, in turn, said that as a matter of policy, it could "neither confirm nor deny the existence of an ongoing investigation." It added: "This is to protect the confidentiality of those involved and to protect the integrity of the investigative process."

SpaceX President and Chief Operating Officer Gwynne Shotwell declined to comment on the security clearance issues or the probes when asked by a Reuters reporter as she left an event in Washington.

Musk did not immediately respond to a request for comment.

The New York Times said the Air Force recently cited potential security risks in denying high-level security access for Musk, and that allies including Israel have flagged concerns that the billionaire CEO might share sensitive data.

© Reuters. FILE PHOTO: SpaceX logo and Elon Musk photo are seen in this illustration taken, December 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Last month, two Democratic U.S. senators, Jeanne Shaheen and Jack Reed, wrote in a letter that reports that Musk has held multiple calls with Russian officials, including President Vladimir Putin, should be investigated by the Pentagon and law-enforcement agencies on national security grounds.

Air Force Secretary Frank Kendall responded last week to Shaheen that he shared those concerns but could not comment on the status of a person's security clearance.

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