Tesla Weighs China Unit Sale Ahead of SpaceX Deal, WSJ Says

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessTesla Weighs China Unit Sale Ahead of SpaceX Deal, WSJ SaysTesla Inc. is weighing a potential separation of its China business to pave the way for a potential merger with SpaceX, the Wall Street Journal reported.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Tesla Inc. is weighing a potential separation of its China business to pave the way for a potential merger with SpaceX, the Wall Street Journal reported. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSome 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. Tesla China representatives didn’t immediately respond to Bloomberg News queries on the report.Speculation has mounted that Elon Musk would move to merge the two companies since Space Exploration Technologies Corp., as SpaceX is formally known, listed last month given their shared ambitions in artificial intelligence.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againDuring an earnings call last week, Musk, who has spoken about the “convergence” of his companies in the past, acknowledged their increasing overlap, but said a merger wasn’t something he could address on Tesla’s conference call. SpaceX already acquired Musk’s artificial intelligence company, xAI, now SpaceXAI, in February. And SpaceX and Tesla already do business together: Tesla sells megapack batteries and Cybertrucks to SpaceX, while the AI chatbot Grok is available in some Tesla vehicles.Separating Tesla’s China operations, which include a plant in Shanghai, would address potential conflicts arising from SpaceX’s work as a major US defense contractor, the Journal said. Such a deal would aim to create a firewall between Tesla’s Chinese subsidiary and its US business.China is a key market and production base for Tesla, with its Shanghai factory churning out more than half of the company’s global deliveries, and serving export markets such as Europe, Canada and Australia. Musk was among a group of US executives, including Apple Inc.’s Tim Cook and Boeing Co.’s Kelly Ortberg, who accompanied President Donald Trump on his trip to Beijing earlier this year. Tesla holds a unique position among China’s most-favored foreign companies. It was the first international carmaker to operate without having to form a joint venture with a local manufacturer — an exception not granted to the likes of Volkswagen AG or General Motors Co. That has helped Tesla gain a strong foothold in the world’s biggest auto market, while legacy rivals such as VW and BMW AG struggle. (Updates to add background details throughout.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.