Who is really steering the rockets that carry America’s secrets, and why is the Pentagon on a ticking countdown? Follow the money into orbit and the trail leads somewhere Washington would rather not look.
SpaceX sits at the heart of America’s orbital muscle, launching military and intelligence satellites and carrying Pentagon communications tied to the war in Ukraine. Now Democratic senators Elizabeth Warren and Andy Kim have asked Defense Secretary Pete Hegseth to probe reports that Chinese investors, routed through tax havens, may hold quiet stakes in Elon Musk’s company, a potential threat to military, intelligence, and civil infrastructure, according to a letter reported by Reuters. They want answers by February 20, 2026. The unease lands as European officials flag Russia’s Luch-1 and Luch-2 for suspected interception and meddling in satellite links, a pattern first detailed by the Financial Times.
Growing fears over SpaceX security
Concerns are mounting inside U.S. political and defense circles over reports that China may be covertly investing in SpaceX, Elon Musk’s aerospace giant. SpaceX is central to launching satellites for U.S. military and intelligence customers, a role that makes it a pillar of national security. Any foreign interference, particularly from an adversarial power, could ripple through sensitive programs and upend strategic calculations.
Senators demand action and investigation
Democratic senators Elizabeth Warren and Andy Kim have written to Defense Secretary Pete Hegseth, pressing for a full investigation into alleged Chinese stakes. They cite press reports and testimony suggesting funds may be routed through tax havens to mask ownership links (as reported by Reuters). Their message is blunt: determine whether hidden capital could compromise military, civil, and intelligence operations.
The Pentagon is expected to deliver findings by 2/20/2026, a brisk timeline that signals the gravity of the claims. Investigators will need to clarify not only how money moves but how governance works inside a company that holds some of Washington’s most sensitive launch manifests.
Trace the ultimate sources of capital and any beneficial owners
Assess exposure of classified missions and supply chains
Outline safeguards or remedies if foreign influence is confirmed
SpaceX’s vital role in U.S. defense
For years, SpaceX has been the Pentagon’s agile partner, delivering military and intelligence payloads and sustaining battlefield communications, including in Ukraine. Its merger with Musk’s artificial intelligence venture, xAI, adds fresh capabilities and tighter integration across hardware, software, and data. That strength, however, cuts both ways. If rivals secured insider access, the risks to encryption, targeting, and resilient networking would grow exponentially.
Espionage fears extend beyond China
The anxiety does not stop at investment flows. European security officials are scrutinizing Russian satellites Luch-1 and Luch-2 for suspected intelligence-gathering. The pair have reportedly intercepted communications from at least 12 satellites over Europe, with concerns they could tamper with or shadow high-value assets (per Financial Times reporting).
With Vladimir Putin’s government leaning harder into space surveillance, the line between orbital proximity operations and espionage is blurring. NATO allies now see satellite security as inseparable from terrestrial deterrence, where one misstep in orbit could trigger cascading consequences.
A delicate balance of power in space
This episode exposes a sharpened contest for orbital leverage, where investment, regulation, and propulsion meet statecraft. As the Pentagon probes the alleged Chinese link to SpaceX, the inquiry may illuminate how capital, code, and classified missions interlock—and where they’re vulnerable. The stakes are unmistakable: protect the satellite backbone, or watch the strategic balance drift beyond reach.