Elon Musk gets backing from a prolific Chinese tech investor
Business & Technology
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Leo Group, a Shanghai-based internet services and manufacturing company, has dumped $50 million in Elon Musk’s aerospace company SpaceX, according to an announcement Wednesday. Shares of Leo are up 30% since the news.
- The details of the plan will involve Leo and partners pooling their investments in a fund totalling between $600 and $760 million. That fund, called TBCA, will then invest in SpaceX.
- Headquartered in China’s Zhejiang province, Leo Group began as a water pump manufacturer and is now famous for its investments in tech.
The context: SpaceX’s ambition is to bring life to other planets. It successfully sent four astronauts to the International Space Station last week and is estimated to be valued around $100 billion.
- Leo’s investment arm held an early stake in Chinese electric car startup Li Auto, which gave a $1.5 billion return on investment. Since then, CEO Wáng Xiāngróng 王相荣 has remained active in the tech scene.
- Leo has been a backer of wind-energy company New Scenery, which went public in April. It is also a backer of pump manufacturer Zhejiang Danau and ecommerce service provider Bi-cheng, both planning IPOs.
The takeaway: Despite the Elon Musk hype among China’s chattering class, Chinese investors’ purse strings are usually tight when it comes to investing in visionary tech. Leo is a rare case of putting its money where its mouth is.
