FAA Bars Employees From Buying SpaceX Stock

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Employees of the Federal Aviation Administration cannot buy stock in SpaceX, Elon Musk's company that went public earlier this month, Politico reported.

The FAA has contracts with SpaceX and regulates commercial launches, including investigating launch failures and accidents.

An internal FAA webpage notes the ethics office has "received a high volume of questions regarding whether FAA employees can buy or hold shares," Politico reported.

"The bottom line: No, you cannot since SpaceX is considered a prohibited investment" under the agency's supplemental ethics standards, the webpage says, according to Politico.

The FAA sent an email to employees Monday mentioning an "ethics alert" and urging employees to view the updated list.

FAA employees' spouses and minor children are also prohibited from trading the stock. An FAA spokesperson told Politico that the agency periodically updates its list of prohibited investments and "reminds employees to review it."

Employees at the FAA are already banned from buying stock in airlines, airline manufacturing companies, and parts suppliers.

Other prohibited investments include the commercial space companies Rocket Lab and Virgin Galactic, according to Politico. Boeing is another prohibited company.

SpaceX has soared into rarefied territory, becoming the world's sixth-most-valuable company with a valuation exceeding $2.4 trillion, even as it continues to lose billions of dollars.

The valuation made Musk a trillionaire; he briefly lost trillionaire status before reclaiming it.

The company's meteoric rise has been fueled chiefly by investor confidence in Musk's vision of the future, including massive data centers fed by artificial intelligence in orbit and eventually building a million-person colony on Mars.

Sam Barron

Sam Barron has almost two decades of experience covering a wide range of topics including politics, crime and business.

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