Key facts
- A businessman with ties to Chinese military contractors was among overseas investors who acquired stakes in SpaceX.
- An entity linked to the Qatari royal family also took a stake in SpaceX.
- SpaceX barred investors from China and Hong Kong from its recent IPO due to regulatory and compliance risks.
- Records show at least a dozen investors from China, Hong Kong, or Russia acquired stakes through Tomales Bay Capital between 2018 and 2021.
- David Su, co-founder of MPCi, invested $15 million in a SpaceX fund in 2020; his firm has backed Chinese space competitors and worked with Chinese government funds.
A businessman with ties to Chinese military contractors was among overseas investors who acquired stakes in SpaceX while it was still a private company, according to newly obtained investor lists. An entity linked to the Qatari royal family also took a stake.
These details emerge as SpaceX navigates the sensitivity surrounding foreign investment in a company that handles classified US government work, including spy satellite development. The rocket company recently barred investors from China and Hong Kong from participating in its initial public offering, citing "regulatory and compliance risks."
The investor list, obtained by ProPublica, details at least a dozen investors with addresses in mainland China, Hong Kong, or Russia who acquired stakes between 2018 and 2021 through a US-based middleman firm called Tomales Bay Capital. The investments, which range from $800,000 to $40 million, are described as relatively small.
One notable investor is an entity owned by David Su, co-founder of the Beijing venture capital firm MPCi. Su's firm has backed Chinese space companies, including some that were later sanctioned by the US government for allegedly assisting the Wagner Group and Iran. MPCi has also partnered with Chinese government funds on aerospace development.
While there is no evidence Su acted improperly, experts suggest that from a US government perspective, the key concern would be whether China-based investors gained access to nonpublic information about SpaceX's technology or strategies, potentially feeding it to competitors. MPCi stated that Su has not received any nonpublic information from SpaceX and is a Singapore citizen responsible for US dollar funds, though he has spent significant time in China.
A lawyer for Tomales Bay Capital asserted that the firm has not provided any non-public, sensitive information to investors and that most investors are not citizens of foreign adversaries. The firm's operator, Iqbaljit Kahlon, acted as a middleman, packaging SpaceX stock into investment funds for clients.
The investor list was unsealed this month following a corporate dispute involving Tomales Bay Capital, with ProPublica successfully moving to make the records public.