Elon Musk's SpaceX has accepted direct investment from Chinese investors, a fact revealed through previously sealed court testimony. This disclosure raises national security concerns, as SpaceX is a significant U.S. military contractor. While not prohibited, Chinese ownership in such companies is heavily regulated by the U.S. government due to espionage risks. A SpaceX investor, Iqbaljit Kahlon, confirmed the presence of direct Chinese investors on the company's cap table. The exact scope and identity of these investors remain unknown because SpaceX keeps its ownership structure private. Previously, Chinese investors were known to hold indirect stakes through intermediary funds. SpaceX secures sensitive government contracts for the Pentagon and NASA, and its Starlink service is used by U.S. embassies and the White House. National security experts believe federal officials would be highly interested in these direct investments, as access to nonpublic company information could benefit Chinese intelligence. SpaceX did not comment on the matter, and Kahlon declined to do so. The court records stem from litigation in Delaware, which ProPublica worked to unseal. SpaceX fought the release of these records, but a judge ordered some to be made public. Buying SpaceX shares is difficult, with direct investors holding actual shares and indirect investors buying into funds that own those shares. The new testimony suggests a closer relationship with SpaceX than previously understood.