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Tesla is reportedly considering selling its China business as part of preparations for a potential merger with SpaceX, according to a report by TechCrunch. The claim suggests discussions are underway regarding a possible spinoff, sale, or closure of Tesla’s operations in China. This development comes despite recent denials from Tesla and CEO Elon Musk, who labeled the report as “fake news.” Tesla’s Shanghai Gigafactory remains a critical asset, accounting for a significant portion of the company’s production and deliveries, particularly to Europe and the Asia-Pacific region.

Key Takeaways

Market pricing suggests uncertainty about the likelihood of a Tesla-SpaceX merger following reports of a potential China business sale.

The December 31 market for a merger announcement shows an increase in YES odds, moving from 17% to 20%, indicating some perceived likelihood.