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[BUSINESS] · United States, China · 92 sources

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Tesla weighs China business split ahead of possible SpaceX merger

The Wall Street Journal reported that Tesla advisors have been discussing how to separate, sell, spin off or even close the company's China operations to clear regulatory hurdles for a potential merger with SpaceX. Elon Musk responded on X, labeling the reports “fake news” and denying any concrete plan.

Tesla’s Shanghai Gigafactory produces more than half of the automaker’s global vehicle deliveries and serves as a major export hub. China remains Tesla’s second‑largest market after the United States, making the Chinese unit strategically vital but also a source of geopolitical risk because SpaceX is a U.S. defense contractor.

Both companies have declined to comment, while analysts note that any restructuring would have to navigate U.S. and Chinese regulatory scrutiny and could reshape the competitive landscape for electric vehicles and aerospace.

Entities

China · China market · Elon Musk · Gigafactory Shanghai · Grace Tao · Shanghai Gigafactory · SpaceX · Tesla China business · Tesla Inc. · Tesla, Inc. · Wall Street Journal

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