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

According to The Wall Street Journal, Tesla is considering selling or spinning off its China business due to geopolitical tensions between China and the US. Musk has previously instructed Tesla executives to establish a clear "firewall" between US and China operations to ensure that the US 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, as divesting China assets may clear obstacles for the merger. Currently, Tesla's China business is centered in Shanghai, which is its second-largest market globally.