Elon Musk has pushed back on a report that Tesla is considering a sale of its China business as part of planning for a possible deal involving SpaceX. The report said Tesla was reviewing ways to separate its China operations, but Musk denied that account.
According to the report, the options under review could include selling the China unit, spinning it off into a separate business, or even shutting it down. The discussion was described as part of broader preparations tied to potential merger talks with SpaceX, one of Musk’s other major companies.
The reported thinking appears to center on the complicated risks around operating in China while pursuing a larger corporate combination. Regulatory scrutiny and rising geopolitical tensions were cited as major issues that could affect any transaction involving Tesla’s China business and a possible SpaceX merger structure.
For now, the situation remains unclear because the reported options have not been confirmed by Tesla beyond Musk’s denial. Still, the report has drawn attention to how sensitive Tesla’s China presence could become if merger talks with SpaceX were ever to move forward.
