Senators demand Pentagon investigate if Chinese investors secretly infiltrated Elon Musk’s SpaceX, and what they find could be devastating

Two Democratic senators are asking the Pentagon to review SpaceX right away. They want to know if Chinese investors secretly bought shares in the rocket company. Senators Elizabeth Warren and Andy Kim sent a letter to Defense Secretary Pete Hegseth. They asked him to look into reports that foreign groups might have hidden access to the important private company.

This matters because SpaceX is very important to national security. According to Reuters, the company launches military and intelligence satellites for the U.S. government. Its Starlink network is also critical. The Pentagon uses it, and Ukraine depends on it heavily for defense. Elon Musk, the world’s richest person, founded SpaceX.

The senators are worried about what this could mean. They say possible Chinese investment is “a national security threat, potentially jeopardizing key military, intelligence, and civilian infrastructure.” Reports and court testimony show that investors with Chinese ties may have sent money through companies in the Cayman Islands and British Virgin Islands. This approach is often used to hide who really bought the shares.

SpaceX’s recent deals raise bigger questions about company ownership

SpaceX recently bought xAI, which makes the situation more urgent. The senators said this deal makes it even more important to know who owns the company. Both Warren and Kim have been vocal about Democratic Party responses to recent challenges.

Musk called xAI “the most ambitious, vertically integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile communications, and the world’s foremost real-time information and free speech platform.” When AI, satellites, and communication platforms combine, it creates a powerful collection of sensitive technology.

If Chinese ownership exists, it could trigger U.S. rules about foreign ownership, control, or influence. These FOCI rules protect sensitive technologies and information from foreign adversaries. The senators want the Department of Defense to get answers quickly. They asked the DoD to reveal the full extent of any Chinese ownership and check if SpaceX must follow FOCI requirements.

They also want to know if the investments need review by the Committee on Foreign Investment in the United States. The senators requested a response by February 20. This timeline reflects growing concerns in Washington about foreign influence in critical technology sectors.

Court records show SpaceX has dealt with ownership issues before. A Delaware court supported a fund manager’s decision last year to remove a Chinese investor from a fund buying SpaceX shares. The fund manager, Iqbaljit Kahlon, had let Leo Investments, a Chinese public company, join as a limited partner. SpaceX told Kahlon the fund could not buy shares if Leo stayed involved.

He had to remove the investor and return their $50 million. The case shows how carefully SpaceX protects who owns it. The fund was set up as a special-purpose vehicle, or SPV. This is a normal way for investors to combine money to buy shares in private companies.

The Pentagon has not yet responded to the senators’ request. The situation comes as the White House deals with constitutional concerns on other matters. SpaceX also has not publicly commented on the allegations. The investigation could affect how the company works with the U.S. government going forward.