Chinese Investors Quietly Funnel Millions Into Elon Musk’s Companies Through Ongoing Secretive Deals

Wealthy Chinese investors have been discreetly channeling millions of dollars into private companies controlled by Elon Musk, including SpaceX, xAI, and Neuralink. Over the past two years, Chinese-backed asset managers have facilitated more than $30 million in share sales of these companies to Chinese investors. 

To navigate the complexities of U.S.-China relations and avoid potential scrutiny from U.S. authorities and businesses wary of Chinese capital, these investments are structured through special-purpose vehicles (SPVs). This approach conceals the identities of the investors, allowing them to invest without attracting undue attention. 

The primary motivation behind this influx of Chinese capital appears to be profit-driven, with little indication of intentions related to technology transfer or influencing public policy. However, the intertwining of Musk’s ventures with Chinese investments does raise questions about potential conflicts of interest, especially given Musk’s significant role in U.S. policy and business. 

It’s also worth noting that Musk’s companies, particularly Tesla, have substantial business interests in China. Tesla’s reliance on its Shanghai factory and local suppliers underscores the complex dynamics of these investments amid the broader context of U.S.-China relations.