Rocket Elon Musk Spacex has allowed Chinese investors to buy shares as long as funds run through the Kayman Islands or other offshore centers, according to reporting by Propublica.
Spacex is a Pentagon Protector Contractor, one who deals with sensitive work such as building a classified spy satellite network. Investing from China increases national security concerns, as it can provide a foreign opposing access to sensitive military technology, intelligence or supply chains.
The overview of Spacex’s investment approaching new questions about Musk’s own links with China, especially among the reports that the Pentagon informed Musk of a possible war with China. The billionaire executive, who is leading charges of federal intestinal expenses, has met regularly with Communist Party officials in China to discuss his business interests. Tesla’s Gigafactory Shanghai builds about half of the Tesla cars, and the site constitutes a considerable part of its sales.
Details of how Spacex allows Chinese investors to buy in the company came to light through its CFO testimony, Bret Johnsen and the big Iqbalji investor Kahlon during a recent corporate dispute in Delaware.
The dispute focused on an aborted 2021 agreement with a Chinese firm that had planned to buy $ 50 million of the company’s stock. When the news became public, Spacex executives withdrew to avoid possible problems with national security regulators.
Kahlon proved in December that Spacex finds it “acceptable” for Chinese investors to buy in the company through offshore vehicles, which are often used to keep anonymous investors.
Experts who spoke to Propublica said this practice is worrying because it is a possible sign that the company is taking active steps to hide foreign ownership interests. It is unclear exactly why the spacex does this; The company did not respond immediately to a comment request.
While passive, non -controlling shares by foreign investors are welcome, is the Trump administration position that opponents like China use hidden investment strategies to obtain technology, IP and lever in strategic industries. As a result, such investments would usually be verified by the Committee on Foreign Investments in the United States (CFIUS).
There is no spacex public record undergoing an official CFIUs summary. Techcrunch has reached CFIUS and Spacex to learn more.
Propublica reporting follows an investigation by the Financial Times that revealed that Chinese investors are using vehicles with special purposes to quietly funk millions in Musk -controlled companies, including Spacex, Xai and Neuralralk.
