According to the Wall Street Journal, citing well-informed sources, the Tesla CEO has instructed several managers to make organisational preparations for a strict separation from the company’s business in China, which would also affect the Tesla factory in Shanghai. Advisors are reportedly evaluating various options, such as a spin-off, sale, or even the closure of operational units in the company’s second-largest market. The goal is to create a clear firewall between Tesla’s US operations and its China business, which has so far been a key contributor to the electric vehicle pioneer’s profitability.
However, Musk said on social media that “this has never even come up in a discussion ever,” calling it “absurdly fake news.”
However, let’s assume that there is a grain of truth to what the Wall Street Journal’s informants told the US newspaper. They say that these considerations centre around strategic and geopolitical concerns. Musk is reportedly concerned about the company’s heavy dependence on Chinese battery cells and Taiwanese semiconductors, as the supply of these critical components could be jeopardised in the event of a war between the two countries.
Another, and perhaps even more decisive, factor is a potential merger with SpaceX, which Elon Musk hinted at during the presentation of Tesla’s quarterly results in a conference call with analysts last week. The ties between the two Musk-led companies are already closely intertwined, for example through the Terafab project, in which both firms plan to jointly build chip factories. This follows earlier collaborations, such as SpaceX’s purchase of numerous Cybertrucks from Tesla.
