Tesla reportedly weighs China unit sale ahead of rumoured SpaceX merger: WSJ
Separating China operations addresses potential conflicts arising from SpaceX’s work as a major US defence contractor
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TESLA is weighing a potential separation of its China business to pave the way for a potential merger with SpaceX, the Wall Street Journal reported.
Some Tesla executives have been told to prepare for the move, the Journal said, citing a person familiar with the talks.
Tesla advisers have discussed options including a spinoff, sale or closure of the China business, according to another person familiar with the situation, the outlet said.
Speculation has mounted that Elon Musk would move to merge the two companies since Space Exploration Technologies, as SpaceX is formally known, listed in June.
Separating Tesla’s China operations, which include a plant in Shanghai, would address potential conflicts arising from SpaceX’s work as a major US defence contractor, the Journal said.
Such a deal would aim to create a firewall between Tesla’s Chinese subsidiary and its US business. BLOOMBERG
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