Saturday, June 21, 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.

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