On 30/7, the Wall Street Journal, citing sources familiar with the matter, reported that Tesla executives were asked to prepare options for separating the company's China business ahead of a potential merger with aerospace company SpaceX. Tesla's advisors discussed various options: forming an independent company, selling it, or closing it. However, the sources also stated that the timeline for such an action remained unclear, and the plans could still change.
Tesla CEO Elon Musk subsequently denied the report on social media platform X, stating: "This was never discussed in any conversation." He called the information "silly fake news."
A merger between Tesla and SpaceX would face significant geopolitical and legal hurdles, particularly in China. SpaceX participates in numerous US national security and satellite programs. In contrast, Tesla operates in China without needing a joint venture with a local company.
For many years, investors and analysts have repeatedly speculated about the possibility of Musk merging the two companies. These speculations intensified when SpaceX conducted a record 75 billion USD initial public offering (IPO) in mid-June.
Last week, Musk did not rule out the possibility of a merger. He only stated that the two businesses had increasingly overlapping areas of operation.
According to Wall Street Journal sources, in recent years, Musk had asked Tesla leaders to structure the company with "boundaries" between its US and China operations. This was to ensure that if geopolitical tensions between the two countries escalated, at least Tesla's US business could survive.
Unlike many foreign automakers, Tesla operates in China without needing a joint venture with a local partner. The Shanghai Gigafactory remains Tesla's largest and most efficient production facility globally, serving as a primary export hub for Europe, Canada, and the Asia-Pacific region.
This factory currently contributes over half of Tesla's total global vehicle deliveries. Its annual capacity exceeds 950,000 vehicles.
By Ha Thu (according to Reuters)
