**Elon Musk’s SpaceX Has Received Direct Investments from Chinese Investors, Court Testimony Reveals**
*By Dwaipayan Roy | Oct 04, 2025 06:23 pm*
Newly unsealed court testimony has revealed that Elon Musk’s aerospace company, SpaceX, has received direct investments from Chinese investors. This marks the first time such information about direct Chinese investment in the privately held firm has come to light.
### Investor Insights and Testimony Details
Iqbaljit Kahlon, a major SpaceX investor, testified last year acknowledging the presence of Chinese investors in the company. “To be honest,” Kahlon stated, some of these investors are “directly on the cap table.”
For context, the “cap table” (capitalization table) lists all shareholders of a company. However, Kahlon’s testimony did not disclose the exact amount of Chinese investment or the identities of these investors.
### Ownership Secrecy Remains Intact
SpaceX has traditionally kept its full ownership structure confidential. Earlier reports suggested Chinese investors held indirect stakes by investing in intermediary funds that then owned SpaceX shares.
The new testimony, however, points to direct investments, indicating a closer financial relationship between Chinese investors and SpaceX itself.
### Growing National Security Concerns
SpaceX’s success is closely tied to sensitive U.S. government contracts, including building spy satellites for the Pentagon and launching spacecraft for NASA.
National security law experts emphasize that federal officials would be highly interested in understanding these direct Chinese investments. If investors gained access to nonpublic information—such as contract details or supply chain data—there could be serious implications for national security.
### SpaceX’s Investment Strategy and Policies
SpaceX carefully controls who can acquire stakes in the company. Investors fall into various categories, with the most exclusive being direct shareholders. This elite group includes funds led by Iqbaljit Kahlon, Peter Thiel, and other venture capitalists personally connected to Elon Musk. Until now, Chinese investors were believed to be part of indirect investment channels, but recent testimony suggests otherwise.
Regarding foreign investments, SpaceX CFO Bret Johnsen testified that the company does not have a formal policy banning investments from countries considered adversaries by the U.S. government. However, fund managers are warned to “stay away from Russian, Chinese, Iranian, North Korean ownership interest” because such ties could jeopardize the company’s ability to secure government contracts.
This cautious stance reflects the complexities of accepting foreign capital in sensitive industries like aerospace technology.
—
SpaceX’s direct acceptance of Chinese investment sheds new light on the company’s ownership and raises important questions about national security oversight as private aerospace firms continue to grow in prominence.
https://www.newsbytesapp.com/news/business/spacex-has-chinese-investors-reveals-testimony-during-court-case/story
