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Elon Musk ’s rocket company SpaceX has allowed Chinese investors to buy stake as long as the funds are rout through the Cayman Islands or other offshore hubs , accord to report fromProPublica .
SpaceX is adefense declarer for the Pentagon , one that handle sensible work like building a classified spy satellite internet . Investment from China raisesnational security business , as it could grant a foreign adversary access to sensitive military technology , intelligence information , or provision chains .
The insight into SpaceX ’s investment glide path come up new questions around Musk ’s own ties with China , particularly amid reputation that thePentagon briefed Muskon a potential war with China . The billionaire executive who is start the mission to gut federal spending has regularly meet with Communist Party officials in China to discusshis business interests . Tesla’sShanghai gigafactorybuilds about half of Tesla ’s cars , and the country make up a important ( if shrinking ) chunk of its sales .
The details of how SpaceX permit Taiwanese investor to buy into the company came to light through the testimonial of its CFO , Bret Johnsen , and major investor Iqbaljit Kahlon during a recent corporate difference in Delaware .
The difference of opinion centered around an aborted 2021 peck with a Chinese firm that had planned to grease one’s palms $ 50 million of the caller ’s stock . When the news became public , SpaceX executive rend out to avoid possible problems with national security regulators .
Kahlon testified in December that SpaceX finds it “ acceptable ” for Chinese investors to purchase into the ship’s company through seaward vehicles , which are often used to keep investor anonymous .
expert who spoke to ProPublica say this practice is troubling because it ’s a potential sign that the company is convey active steps to conceal strange ownership interests . It ’s unreadable exactly why SpaceX does this ; the fellowship did not at once respond to a request for comment .
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While passive , noncontrolling stakes from foreign investor are welcome , it isthe Trump governance ’s positionthat adversaries like China use concealed investiture strategies to obtain technologies , IP , and purchase in strategical industries . As a result , typically such investments would be vet by the Committee on Foreign Investment in the United States ( CFIUS ) .
There ’s no public disk of SpaceX undergoing a stately CFIUS review . TechCrunch has reached out to CFIUS and SpaceX to learn more .
ProPublica ’s reporting watch over an investigation from theFinancial Timesthat found that Chinese investors are using special - determination vehicle to quietly funnel million into Musk - controlled fellowship , including SpaceX , xAI , and Neuralink .
