SpaceX's 5 major controversies that will shock you

Elon Musk has never been a stranger to controversy, and neither have his companies. 

From Tesla to xAI, Musk’s ventures often make headlines, and SpaceX, his most valuable company, is no exception.

Founded in 2002 with the goal of making humanity a multiplanetary species, SpaceX has revolutionised space travel through reusable rockets and the Starlink satellite network.

But behind its groundbreaking achievements lie a series of controversies that have raised concerns around the world.

1. Chinese investments in SpaceX

A recent courtroom testimony by investor Iqbaljit Kahlon revealed that Chinese investors may hold direct stakes in SpaceX, marking the first public confirmation of such ties.

Although Chinese involvement in US defense-linked firms is tightly regulated, the disclosure raised national security concerns.

Reports suggest that some investors have bought into SpaceX indirectly through middleman firms, intensifying scrutiny from Washington.

2. US Justice Department lawsuit

In August 2023, the US Department of Justice sued SpaceX, accusing it of discriminating against asylees and refugees in hiring.

The case alleged that SpaceX wrongly cited “export control laws” to justify hiring only US citizens and green-card holders.

Although the DOJ dropped the case in early 2025, it cast a shadow over the company’s recruitment practices.

3. Russian billionaire’s secret stake in SpaceX

In 2024, Bloomberg revealed that sanctioned Russian senator Suleiman Kerimov, a billionaire from Daghestan, had owned about 1% of SpaceX through a Delaware-based trust.

The revelation sparked outrage, given Kerimov’s ties to Vladimir Putin and his placement on US sanctions lists.

The stake was reportedly dissolved in 2022, but the controversy lingered.

4. Starship failures and safety concerns

SpaceX’s Starship, the vehicle designed for deep-space missions, has faced repeated flight failures in 2025.

From engine malfunctions to reentry losses, multiple test flights ended in explosions or self-destruct sequences.

Engineers cite ongoing design refinements, but critics warn of safety hazards such as debris fallout and environmental risks from failed launches.

5. Musk’s alleged affairs with SpaceX employees

A Wall Street Journal investigation in 2024 alleged that Musk engaged in inappropriate relationships with SpaceX employees, including a former intern.

The report detailed text exchanges, power dynamics, and claims of retaliation, leading to widespread criticism of the company’s internal culture.