Exclusive: After citations against Elon Musk’s Boring Company were suddenly withdrawn, federal regulators are now investigating Nevada OSHA

Federal OSHA has opened a 'Complaint About State Plan Administration' (CASPA) into Nevada’s OSHA after a Fortune investigation found the state agency abruptly rescinded three “willful” and serious citations against Elon Musk’s Boring Company—issued after two firefighters were burned—following a meeting arranged by the company’s president, with the rescission undocumented and a case-diary entry later deleted. Nevada officials say the citations were withdrawn because they did not meet legal requirements and that the governor’s office often fields business complaints, but lawyers, regulators and lawmakers including Rep. Dina Titus and Sen. Catherine Cortez Masto say procedures were violated and have demanded transparency. The regional federal review, which typically runs under 60 days and will examine case files, interviews and state procedures (Nevada’s 2024 OSHA report already flagged missing documentation), could require corrective actions or procedural changes and heightens regulatory, governance and political risk for the Boring Company and other companies operating under Nevada’s plan.

Analysis

Federal OSHA has opened a Complaint About State Plan Administration (CASPA) into Nevada OSHA after a Fortune investigation found Nevada OSHA abruptly rescinded three “willful” and serious citations against the Boring Company that were issued after two firefighters were burned by chemicals. Fortune reported the citations were withdrawn within 24 hours after the Boring Company’s president set up a meeting with senior state officials, the rescission was not documented in the case file, and a case-diary entry describing the meeting was later deleted.

The CASPA process, which OSHA guidance says typically takes fewer than 60 days, will have the regional office review Nevada OSHA’s case file, interview state plan staff and others involved, and consider Nevada OSHA’s 30-day response; the agency’s 2024 annual report praised staffing improvements but flagged missing documentation. Jordan Barab, a former federal OSHA official, noted that federal leaders are likely engaged and that findings could require case-specific corrections or broader procedural changes to the state plan.

The inquiry raises tangible regulatory, governance and political risk for the Boring Company and for companies operating under Nevada’s plan given attention from Rep. Dina Titus and Sen. Catherine Cortez Masto; outcomes could increase enforcement scrutiny or require remedial actions. Market signals show mildly negative sentiment and uncertain near-term impact, making this a near-term governance and regulatory catalyst rather than an immediate market-moving event.

Key Decisions for Investors

• Monitor the CASPA timeline and official findings closely over the next 60 days and treat the report release as a primary catalyst for repositioning
• If you have exposure to contractors, suppliers or local partners tied to the Boring Company or Nevada construction projects, reassess counterparty and regulatory risk and consider reducing concentrated positions until documentation/procedures are clarified
• Avoid initiating new material exposure to entities materially dependent on Nevada OSHA approvals or Boring-related contracts until the investigation’s corrective actions (if any) are known
• Consider short-duration hedges or reduced position sizing for holdings sensitive to governance or political backlash in Nevada while the federal review is unresolved