Chinese investors are privately betting on Elon Musk’s companies

Wealthy Chinese investors quietly direct tens of millions of dollars to the private companies managed by Elon Musk, using an arrangement that protects their identity based on public views, says that according to the leaders and investors of persons involved in the transactions.

Because Musk In China, asset managers in China were appointed in the event of a US President Donald Trump to renew the US government to renew the US government to the US government and have promoted the relationship between the couple as an attractiveness to restore capital from the rich Chinese. The money flows into Musk’s non-public projects, including XAI, Neuralnk and Spacex, the world’s most valuable private company.

Investments are placed through opaque structures, called special -powered vehicles that have the advantage of hiding investor identities in order to avoid cautious companies in the US authorities and China’s capital in between two countries.

The asset managers behind the shops have told investors that the units are specifically designed to avoid publication.

The use of special use vehicles in financing is widespread and there is nothing illegal in the arrangements. Still, it raises concerns about the possibility of unreasonable impact and conflicts of interest when Musk has unprecedented participation in US politics, politics and business.

« How can there be so many connections in China, but still be a good person to reform the US government? » Said the American Enterprise Institute’s senior scholarship Derek Schesors. Chinese Money Virta to the Musk Business Empire « adds this picture that he is more interested in his reputation and brand in China than in the interests of American. »

The opaque nature of the structures makes it difficult to assess the entire scale of Chinese capital flowing into Musk’s private projects. But three Chinese-supported clerics told the Financial Times that over the last two years, they had sold Chinese investors worth more than $ 30 million in shares of SpaceX, XAI and Neuralkin, three private technology companies controlled by musk.

All in all, SpaceX has raised more than $ 10 billion from investors around the world since its inception in 2002, according to Pitchbook.

It Chinese capital Musk’s business empire is primarily profitable and has little to do with the people who participate in the events with technology transfer or public policy.

With a slow domestic economy, wealthy Chinese looking for investment opportunities abroad.

But the structure means that Chinese investors will be limited, if any, of the company’s financial and results, unlike the details that are shared with the main investors.

Although Musk has a warm relationship with Beijing, it has been difficult for a company to take immediate investments in China, financial advisors said. Beijing’s safety Hawks has criticized SpaceX for its bonds to the US Army.

« It is not easy for Chinese units to invest in a prominent US high -tech company, such as SpaceX, » said Kevin Chen, chief economist at Horizon Financial in New York, in New York. « Chinese money is not welcome in many areas. »

Representatives of Musk, SpaceX, XAI and Neuralk did not respond to repeated comment requests.

On a recent Wednesday afternoon, hundreds of Chinese investors tuned in to the webinar to hear a representative of Homaer Financial, Eastern China, who has the opportunity to invest in SpaceX for just $ 200,000 per person.

The Homer’s official said he was expecting SpaceX’s appreciation almost triple to 1.1 tons within three years, partly due to the « comprehensive » support of the United States government and the army, which continued to set up procurement regulations for a space technology company even in the event of an « emergency ».

China’s wealthy started financing Musk private companies in the late 2010s, when Tesla’s founder started construction of an electric vehicle factory in Shanghai in 2019 to utilize the country’s efficient and affordable supply chains.

Early investments paid. Homaer said in a social media message in October that a group of its customers had generated 530 % of the return on SpaceX in June 2018 and had come six years later.

The Homer’s investor confirmed the number and added that he regretted that he had not invested more. « I knew Musk was a good businessman, » he said. « But I didn’t expect him to be so successful in such a short time. »

Over the past two years, Homaer launched three reserves to invest in SpaceX and was able to achieve their capital to raise their goals within a few weeks, said a person who has information about it.

When Beijing imposed restrictions on private companies – including withdrawal Jack Ma’s Ant Group IPO And the riding group is required to submit the Didi Global application in the United States -Musk’s projects continued to grow.

« I have more faith in the musk than most of Chinese starting entrepreneurs who are struggling to survive the state’s dominant economy, » said an investor who bought SpaceX shares through Homaer last year.

Some Chinese have paid the price to openly purchase stakes for Musk projects. The Chinese company Leo Group made titles in 2021 when it announced its intention to invest $ 50 million in SpaceX through Tomaleles Bay Capital, California. Less than a week later, Leon’s US partner reversed the trade and invoking the discomfort of SpaceX with the disclosure of the Chinese share according to the legal battle between two companies.

In response, the Chinese have turned to special use. Property managers connect investors’ assets to the registered community of the Cayman Islands, which invests money in the US funds, managed by Western capital investors, which are already existing investors in Musk’s projects.

The presence of Chinese funds is not visible in public registers of ownership.

A person close to Homer said the company asked US partners whether they accepted Chinese money. Typically, the conditions also require a US partner to investigate investments in extreme scenarios, such as a military conflict between two countries.

« There is a risk because we are not sure how bad US -China relationships will come over the next few years, » the person said.

Uncertainty has not prevented wealthy Chinese from entering into contracts. Although Beijing’s strict capital monitoring is limited to Musk’s Chinese investors in foreign bank accounts, some wealth managers have found alternatives to overcome the obstacle.

« China faces a shortage of overwhelming and high quality projects, » New York Investment Manager, who seeks to raise capital from China for such investments. « There we will fit. »