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Tesla Weighs Sale of China Business to Pave Way for Potential SpaceX Merger
The U.S. automaker could sell or spin off the business in its second-largest market over geopolitical concerns
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Elon Musk designed Tesla’s TSLA3.53%increase; up pointing triangle China business to be easily separated from its U.S. business because of geopolitical tensions. It might also come in handy if he proceeds with a SpaceX SPCX-0.31%decrease; down pointing triangle merger.
Musk in recent years instructed Tesla executives to organize the company with a “laser” between its U.S. and China businesses, according to people familiar with the planning. He wanted to ensure that in the event of geopolitical strife between the two countries, at least the U.S. half of Tesla would survive.
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