Before SpaceX IPO, investors in China secretly acquired stakes

Recent disclosures reveal that foreign investors, including a businessman with links to Chinese military contractors, acquired stakes in SpaceX while it was still privately held. Notably, an entity tied to the Qatari royal family also participated in these investments. This information comes from a private investor list obtained by ProPublica, highlighting a sensitive aspect of Elon Musk’s aerospace enterprise: the identities and origins of its investors from countries like China. SpaceX has primarily built its reputation on sensitive contracts with the U.S. government, particularly in areas like constructing spy satellites for the Pentagon. Although there is currently no outright prohibition on Chinese investments in American military contractors, such financial engagements are subject to strict regulations. Reflecting its awareness of these complexities, SpaceX recently restricted investors from China and Hong Kong from purchasing shares in its initial public offering (IPO), citing “regulatory and compliance risks,” according to Bloomberg. The U.S. government has raised concerns that China may leverage investments in critical sectors for espionage and access to advanced technologies. Notably, SpaceX's IPO last week was a record-breaking event, positioning Musk as the world’s first trillionaire. Musk has extensive business ties in China, particularly through Tesla, which manufactures a significant number of its vehicles there. The newly released records detail at least a dozen investors with ties to mainland China, Hong Kong, or Russia who secured stakes in SpaceX between 2018 and 2021 through a U.S.-based middleman firm, Tomales Bay Capital. The investments, which range from $800,000 to $40 million, showcase a variety of financial commitments. Among these investors was an entity associated with David Su, co-founder of the prominent Beijing venture capital firm MPCi, which invested $15 million in a SpaceX fund in 2020. This isn't Su's only venture into the space sector; his firm is known for backing several of SpaceX’s Chinese competitors. It's worth noting that two satellite companies supported by Su’s firm have faced U.S. government sanctions for allegedly aiding the infamous Russian mercenary group, Wagner, as well as for purportedly facilitating attacks on U.S. military forces in Iran during ongoing conflicts.