Democratic leaders of two U.S. House committees have called on NASA and the Department of Defense to investigate potential conflicts of interest by Elon Musk related to investments in SpaceX from Chinese sources. The May 6 letter said there were concerns about the influence of the space company’s CEO, who served as a senior adviser to President Donald Trump, on government contracts.
SpaceX is a major executor of government contracts in national security and space programs. However, the congressmen said Musk’s proximity to power could cause bias in deal-making. “Even the kind of conflict of interest is unacceptable, especially when it comes to the security of the country,” the authors of the appeal emphasize.
Chinese trace
The report cites a ProPublica investigation that revealed investments by Chinese companies in SpaceX through offshore entities such as the Cayman Islands. Although the amount invested is less than 100 million, less than 0.03% of the company’s $350 billion valuation, lawmakers are concerned about the lack of transparency. “Can China gain access to classified technology through these investments?” – they wondered.
NASA’s response
During the hearing, NASA administrator nominee Jared Isaacman said he was not familiar with the report, but assured: “The government must guarantee fair competition and protection from foreign influence.” However, the congressmen require the agency and the Pentagon to provide details by May 20 on mechanisms to verify conflicts of interest and foreign investment in SpaceX.
The shadow of DOGE
This is not the first time officials have been contacted because of Musk’s increasingly troubling activities. Democrats have previously asked about his role in the Department of Government Efficiency (DOGE), which actively canceled “unnecessary” contracts under Trump. NASA said in April that some DOGE members worked for the agency as advisers, but declined to disclose their names or responsibilities, prompting a new wave of criticism.
If NASA and the Department of Defense do not provide a response by the deadline, Congress could initiate a formal investigation. So far, SpaceX has not commented on the situation, but questions remain: do Musk’s private interests really influence government decisions? And are Chinese investments a threat to U.S. security?
Earlier we reported on how Elon Musk bullied NASA employees.
According to spacenews.com
