Friday, May 30, 2025

Chinese Investors’ $30M Bet on Musk Raises Red Flags Over Conflicts of Interest

AP·Newsis
AP·Newsis

Chinese investors are reportedly making substantial investments in companies led by Elon Musk, CEO of Tesla, including xAI, Neuralink, and SpaceX.

According to the Financial Times (FT), these investors utilize special purpose vehicles (SPVs) to mask their identities while acquiring shares in Musk’s privately held ventures.

While many of these investments are speculative, concerns are emerging about the growing influence of Chinese capital in American politics.

The FT cited three asset managers who work with Chinese investors and claimed they had sold over $30 million worth of shares in Musk’s private companies to Chinese investors over the past two years.

Although investing through SPVs is legal, some are raising concerns about potential conflicts of interest—especially given Musk’s significant influence as he leads the Department of Government Efficiency (DOGE) in the Trump administration.

Derek Scissors, a senior fellow at the American Enterprise Institute, questioned Musk’s ability to lead U.S. government reforms given his financial ties to Chinese investors. He asked how someone in Musk’s position could continue to be the right person to reform the U.S. government while maintaining such extensive ties to China.

Despite these concerns, the Chinese investments appear to be primarily profit-driven, with no apparent intent to influence technology transfers or U.S. policies.

The FT also highlighted the keen interest of Chinese investors in Musk. A recent online seminar by a Hangzhou-based investment firm reportedly attracted hundreds of participants eager to invest in SpaceX. The firm promoted individual investment up to $200,000, claiming SpaceX’s valuation could triple within three years due to U.S. government support.

As China faces an economic slowdown and tighter regulations on its tech sector, affluent investors are looking overseas to seek foreign investment options.

Hot this week

Trump’s Bold Move: Retirement Funds Can Now Flow into Bitcoin Investments

The Trump administration allows Bitcoin investments in pension accounts, reversing Biden-era restrictions, potentially benefiting the Trump family.

WTI and Brent Crude Climb on Renewed Supply Fears

Oil prices surged due to supply concerns and geopolitical tensions, despite OPEC+ plans to maintain production levels.

Nvidia Beats Expectations with AI-Driven Growth, Stock Rallies Post-Close

The New York stock market fell ahead of Nvidia's earnings, which later exceeded expectations, boosting investor confidence and tech stocks.

First Sale Rule Gains Renewed Traction Amid New U.S. Tariffs

As tariffs rise, companies are revisiting the First Sale Rule to lower import duties, despite its strict requirements and paperwork.

OPEC+ Meeting Spurs Market Caution, Drives Oil Prices Lower

Oil prices fell as OPEC+ plans to boost output, with Brent crude at $64.09 and WTI at $60.89 per barrel amid rising supply expectations.

Topics

Trump’s Bold Move: Retirement Funds Can Now Flow into Bitcoin Investments

The Trump administration allows Bitcoin investments in pension accounts, reversing Biden-era restrictions, potentially benefiting the Trump family.

WTI and Brent Crude Climb on Renewed Supply Fears

Oil prices surged due to supply concerns and geopolitical tensions, despite OPEC+ plans to maintain production levels.

Nvidia Beats Expectations with AI-Driven Growth, Stock Rallies Post-Close

The New York stock market fell ahead of Nvidia's earnings, which later exceeded expectations, boosting investor confidence and tech stocks.

First Sale Rule Gains Renewed Traction Amid New U.S. Tariffs

As tariffs rise, companies are revisiting the First Sale Rule to lower import duties, despite its strict requirements and paperwork.

OPEC+ Meeting Spurs Market Caution, Drives Oil Prices Lower

Oil prices fell as OPEC+ plans to boost output, with Brent crude at $64.09 and WTI at $60.89 per barrel amid rising supply expectations.

U.S. Markets Rebound Post-Holiday on Optimism Over U.S.–EU Trade

U.S. stock markets surged after tariff negotiations, with M7 tech companies leading gains, notably Tesla and Nvidia.

North Korea’s Mount Kumgang Poised for UNESCO World Heritage Status

North Korea's Mount Kumgang is recommended for UNESCO World Heritage listing, potentially becoming its third site by July.

Qualcomm Unveils Next-Gen DragonWing Tools for Embedded and Industrial IoT

Qualcomm hosted the IoT Partner & Tech Day, showcasing innovations in IoT, AI, and new products to strengthen partnerships in various sectors.

Related Articles