Tesla Considers Selling China Business to Pave the Way for Potential SpaceX Merger

TechFlow News, July 31: According to The Wall Street Journal, Tesla is considering selling or spinning off its China operations due to Sino-U.S. geopolitical tensions. Musk has previously instructed Tesla executives to establish a clear "firewall" between U.S. and China operations to ensure that the U.S. business can survive independently should relations between the two countries deteriorate.

This sale or spin-off plan is also believed to be related to the potential merger process between Tesla and SpaceX, and divesting Chinese assets may clear the way for the merger. Currently, Tesla's China business is centered in Shanghai and is its second-largest global market.