Tesla reportedly might sell its China business ahead of a SpaceX merger

The Wall Street Journal reports Tesla has asked some executives to prepare options for separating its China business.

The options include a spinoff, sale, or closure, tied to planning for a possible SpaceX merger and Taiwan-related contingency work.

China is a major market and manufacturing hub for Tesla, so any separation would mark a major strategic shift.

The move could also reduce regulatory and national security hurdles to a potential Tesla-SpaceX combination.