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Elon Musk is considering a potential business separation of Tesla's China operations to facilitate a merger with SpaceX.
Elon Musk is considering separating Tesla's China operations from the rest of the company's global business to facilitate a potential merger with SpaceX. The move would involve a spinoff, sale, or closure of the China-based business, which currently serves as a major production hub for Asia and Europe. Separating the China operations would simplify the integration of Tesla into SpaceX, which faces strict national security and citizenship rules as a defense contractor. Executives have already been prepared for a potential split in the event of a Beijing invasion of Taiwan. This move would represent a major concession, as China currently dominates Tesla's business as both a market and a production center.