The recent initial public offering (IPO) of SpaceX, the aerospace company founded by Elon Muskhas brought to light a network of foreign investors who acquired stakes in the company before it went public. Among these investors are entities with ties to China, raising concerns about national security and the influence of foreign capital in sensitive U.S. industries.
SpaceX, known for its work on spy satellites and other defense-related projects for the Pentagon, has always been a subject of scrutiny when it comes to foreign investment. While there is no outright ban on such investments, they are heavily regulated due to the sensitive nature of the company’s work. The recent revelations come from a private investor list obtained by ProPublica, which sheds light on how investors from China, Hong Kong, and Russia acquired stakes in SpaceX through a U.S.-based intermediary company called Tomales Bay Capital.
Foreign Investments in SpaceX: A Closer Look
The investments, ranging from $800,000 to $40 millionwere made between and 2026. One notable investor is David Suco-founder of the Beijing-based venture capital firm MPCi. Su’s group invested $15 million in a SpaceX fund in 2026. MPCi has a history of supporting Chinese space companies, some of which have been sanctioned by the U.S. government for alleged ties to the Russian mercenary group, the Wagner Group.
Su has denied any wrongdoing, stating that he has not received any nonpublic information about SpaceX. MPCi described Su as a Singapore citizen who resides in Singaporealthough a profile from 2026 noted that he spent almost 100% of his time in China over the past 20 years. The firm also clarified that MPCi is a brand name with different teams and funds, and that Su is in charge of the U.S. dollar funds.
National Security Concerns
The U.S. government has expressed concerns about the potential for foreign investors to gain access to nonpublic information about SpaceX’s systems or strategies. Sarah Bauerle Danzmanan Indiana University professor who has worked for the State Department scrutinizing foreign investments, highlighted the importance of ensuring that investors do not have conflicts of interest with other Chinese companies. If an investor were to pass nonpublic information to rivals, it could pose a significant national security risk.
A lawyer for Tomales Bay Capital, Ryan Stonerockstated that the firm has not provided any nonpublic, sensitive information regarding SpaceX to investors. He emphasized that the investors are passive limited partners and have not been given any additional information about SpaceX beyond fund financials that include quarterly valuations. Stonerock also noted that the majority of the investors on the unsealed Tomales Bay investor list are not citizens of any foreign adversaries, including Russia or China.
The Role of Tomales Bay Capital
Iqbaljit Kahlona shareholder in Tomales Bay Capital, has long been associated with SpaceX’s leadership. Bret JohnsenSpaceX’s CFO and a 15-year employee, described Kahlon as someone who has been with the company in one form or another longer than he has. Kahlon’s company frequently purchases SpaceX stock, packages it into investment funds, and charges fees to investors who purchase additional shares of those funds.
According to meeting minutes that later appeared in court records, Kahlon promised special access to SpaceX, including quarterly updates on the company’s business development, visits to SpaceX, and the opportunity to interview SpaceX’s CFO, in a 2026 pitch to one potential investor in China. The Kahlon investor list raises the number of names in the public eye regarding SpaceX ownership, although some of the investors are shell companies with unknown ultimate owners.
Connections to Qatar and Other Investors
The documents also reveal connections between SpaceX and Qatar. Funds affiliated with Bracket Capitalan investment firm with offices in Los Angeles, London, and Qatar, invested about $48 million through a series of deals from through 2026. According to an email Kahlon sent to SpaceX’s CFO, Bracket has money from the Qatari royal family. Additionally, the ledger lists Doha, Qatar, as the home of a mysterious business called AM FIG Cayman Limitedwhich made an investment of around $10 million in 2026.
The documents do not specify whether the Bracket investments were made on behalf of the royal family or some other client. In 2026, Kahlon texted a Bracket employee to ask them to fundraise for yet another SpaceX deal, mentioning that they could send Yalda AoukarBracket’s co-founder, to talk to the “big guy” for a “bail out.” The meaning behind these terms remains unclear.
The investments covered in the ledger were small percentages of SpaceX but would have generated significant windfalls. The valuation of the business has increased significantly over the past few years, rising from $33.3 billion in to $2.7 trillion as of Wednesday morning.
