By Dwaipayan Roy | Oct 04, 2025, 06:23 PM
—
**What’s the story?**
Elon Musk’s aerospace company SpaceX has received direct investments from Chinese investors, a recently unsealed testimony has revealed. The revelation came during a court case involving SpaceX and was provided by an insider of the company. This marks the first time such information about direct Chinese investment in the privately held firm has come to light.
—
**Investor insights: Testimony details**
Iqbaljit Kahlon, a major SpaceX investor, testified last year that the company has Chinese investors “to be honest.” He further clarified that some of these investors are “directly on the cap table.”
The term “cap table” refers to a company’s capitalization table, which lists its shareholders. However, Kahlon’s testimony does not disclose how much money Chinese investors have invested in SpaceX or reveal their identities.
—
**Ownership secrecy: Structure remains undisclosed**
SpaceX has consistently kept its full ownership structure under wraps. Earlier reports suggested that some Chinese investors had taken indirect stakes in the company by investing in middleman funds that owned shares in SpaceX.
However, this new testimony reveals direct investments, indicating a closer relationship between these investors and the aerospace firm.
—
**Security concerns: National security at stake**
SpaceX has flourished by securing sensitive U.S. government contracts, including building spy satellites for the Pentagon and launching spacecraft for NASA.
National security law experts say federal officials would be highly interested in understanding the extent of direct Chinese investment in SpaceX. If these investors gained access to nonpublic company information—such as contract details or supply chain data—it could pose a significant risk to national security.
—
**Investment strategy: Categories of investors at SpaceX**
SpaceX carefully controls who can buy stakes in the company, with investors falling into different categories.
The most exclusive group consists of direct investors who actually own SpaceX shares. This group includes funds led by Kahlon, Peter Thiel, and a few other venture capitalists with personal ties to Elon Musk. All previously known Chinese investors in SpaceX were part of this latter category.
—
**Investment policy: SpaceX’s approach to foreign investments**
SpaceX CFO Bret Johnsen testified that the company has no formal policy about accepting investments from countries deemed adversaries by the U.S. government. However, he noted that fund managers are asked to “stay away from Russian, Chinese, Iranian, [and] North Korean ownership interest” as such ties could complicate winning government contracts.
This suggests a cautious approach toward foreign investments in sensitive industries like aerospace technology.
—
*Stay tuned for more updates on this developing story.*
https://www.newsbytesapp.com/news/business/spacex-has-chinese-investors-reveals-testimony-during-court-case/story
