Tesla's China Footprint Complicates Path to Possible SpaceX Merger
Analysts say a China separation could reduce regulatory scrutiny, as SpaceX drew about a fifth of its 2025 revenue from U.S. federal agencies.
- Tesla's China business complicates a potential merger between Elon Musk's automaker and SpaceX because the space firm's reliance on federal agencies invites intense national security scrutiny. Musk may face questions during SpaceX's earnings call on Tuesday.
- The Wall Street Journal reported last week that Tesla executives were told to prepare for separating the China business; however, Musk denied the report, stating such a separation had "never even come up in a discussion."
- Automotive Ventures founder Steve Greenfield said Tesla might split from China because it is not central to Musk's long-term vision of robotics and autonomous driving. "If their ultimate goal is to be acquired by SpaceX and, within five or 10 years, move from vehicles to humanoid robotics," Tesla may prioritize that.
- A standalone Chinese entity would need buy-in from the Chinese Communist Party, who are "more than likely to require" board seats, analysts say. Investor Shawn Campbell warned, "I would immediately sell any Chinese shares in the event of a spinoff."
- Brian Mulberry of Zacks Investment Management said cleaving off China could "clear the way for a cleaner merger domestically." Yet others question where Tesla would manufacture vehicles without the Shanghai Gigafactory, which historically accounts for more than half of global deliveries.
14 Articles
14 Articles
Tesla's China footprint complicates path to possible SpaceX merger
Tesla's electric vehicle business in China looms as a key hurdle to a potential merger between Elon Musk's automaker and SpaceX because of complications it could pose for the space firm's business with the U.S. government.
Tesla is considering selling or spinning off its China business to pave the way for a possible future merger with SpaceX. According to The Wall Street Journal, Elon Musk's company has been preparing for such a scenario for several years, and some of the management has now been instructed to analyze options for separating the Chinese part of the business from the rest of the group.
Musk's China Conundrum: Tesla Eyes Exit as SpaceX Merger Talk Swirls
Elon Musk built Tesla’s China presence with an eye toward survival. He drew a sharp line. A “laser” between its U.S. and Chinese operations, according to people familiar with the planning. The goal was clear. If tensions between Washington and Beijing boiled over, the American side of the business would endure. Now that firewall could serve another purpose. The Wall Street Journal reported Thursday that some Tesla executives have been told to pr…
This Week in Tesla: Elon Musk Dismisses China 'Fake News,' Concerns Over Tesla Valuation and More - Tesla
Elon Musk Dismisses Rumors of Tesla’s Chinese Business SaleGary Black’s Fair Valuation of Tesla Investor Gary Black reaffirmed his view that Tesla shares were overpriced. He pegged a fair price for the share at $312, criticizing bullish supporters who refuse to compare valuation versus price, stating that such investors are doomed to overpay for companies [...]
Tesla is considering spinning off and selling its China business to pave the way for a potential merger with space technology company SpaceX, The Wall Street Journal reported, citing sources familiar with the talks. If confirmed, it would be one of the largest deals in the auto industry. The Shanghai factory produces more than half of all Tesla […]
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