Tesla's China operations present a major hurdle for any potential SpaceX merger. Analysts highlight technical and regulatory challenges in separating these businesses. SpaceX's reliance on US government contracts could intensify scrutiny of such a deal. Separating Tesla's China business might ease domestic regulatory concerns. However, this move could create governance issues within China's market.

Elon Musk rejected a Wall Street Journal report claiming Tesla explored separating or selling its China business ahead of a potential SpaceX merger. The

Tesla's China operations present a major hurdle for any potential SpaceX merger. Analysts highlight technical and regulatory challenges in separating these businesses. SpaceX's…