Tesla Shares Slide On Reports Musk's Pentagon Security Clearance Under Review

Another day, another headline about the CEO of Tesla has sent the carmaker's shares lower...

As Bloomberg reports, The Pentagon is reviewing Elon Musk’s federal security clearance following the billionaire’s marijuana toke on a California comedian’s podcast in September, according to a U.S. official.

Bloomberg details that Musk has refiled his SF-86 security form, which requires a federal employee or contractor seeking a clearance to acknowledge any illegal drug use over the previous seven years, according to the official, who asked not to be identified. The entrepreneur has a secret-level clearance because of his role as founder and CEO of Space Exploration Technologies Corp., which is certified to launch military spy satellites.

“The Department of Defense is following its normal process when information which may affect an individual’s clearance eligibility is brought to our attention,” the service said in an emailed statement to Bloomberg News, when asked if Musk was required to resubmit his clearance form after the podcast.

“For privacy and security reasons, we do not publicly discuss individual clearance status.”

It “totally would make sense” for the Defense Security Service to ask Musk to update his application and to investigate the situation further, said Mark Zaid, a Washington attorney who specializes in federal whistle-blower cases and representing clients facing clearance challenges. Zaid doesn’t represent Musk and isn’t aware of the details of his case.

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