Tesla is looking at cutting loose its China business to clear a path toward a merger with SpaceX, according to a new Wall Street Journal report.
If true, it would be a massive deal in the auto industry. Tesla’s Shanghai factory builds more than half of all Tesla vehicles, so any separation would carve out the single biggest piece of Tesla’s car operation.
Update: Elon Musk has denied the WSJ report, but as usual, that should be taken with a grain of salt.
What the report says
Citing a person familiar with the talks, the Journal said advisers have floated everything from a spinoff to an outright sale to simply winding the operation down. Nothing is locked in, according to the report, and how fast Tesla could actually move remains unclear.
