US senators want SpaceX probe over potential Chinese investments
US Senators Elizabeth Warren and Andy Kim are asking the Pentagon to look into SpaceX after court testimony revealed Chinese investors may have stakes in the company through offshore shell firms.
The concern? SpaceX is deeply involved in US defense projects, like building spy satellites and running Starlink for Ukraine, so foreign investments could be a big security risk.
They want the Department of Defense to weigh in
Testimony from an investor and testimony from SpaceX's CFO lent credibility to claims that Chinese money may have entered SpaceX—one $50 million deal with a Chinese firm was even aborted after it went public, to protect government contracts.
Now, senators want full transparency on who owns what at SpaceX and asked the Department of Defense to disclose any Chinese ownership, assess FOCI exposure and determine whether investments should be reviewed by CFIUS, asking for a response by February 20.
With SpaceX recently merging with Elon Musk's AI company xAI, there's extra worry about sensitive tech ending up in the wrong hands.