Tesla is considering selling its China operations, according to people familiar with the matter, as the electric vehicle maker also explores a merger with SpaceX. The potential divestiture would mark a major shift for the company, which has invested heavily in the world's largest auto market.
What the sale would mean
A sale of Tesla's China business would include its manufacturing facility, sales network, and local supply chain. The company has not publicly confirmed the discussions, and no final decision has been made. The move comes as Tesla faces growing competition from domestic Chinese automakers and regulatory pressures in the region.
The merger talks with SpaceX
Separately, Tesla and SpaceX are in merger talks, though the details remain private. Combining the two companies would create a sprawling enterprise spanning electric vehicles, energy storage, and space exploration. The talks are said to be at an early stage, and it is unclear how a sale of the China business would affect the merger discussions.
Unanswered questions
It is not known which buyers might be interested in Tesla's China assets, or what valuation the company would seek. The company has not responded to requests for comment. The situation remains fluid, and both the potential sale and the merger talks could fall through.
