SpaceX, Tesla Ready Megamerger as China Split Could Ease Multi-Trillion-Dollar Deal
Updated
Updated · The Motley Fool · Jul 31
SpaceX, Tesla Ready Megamerger as China Split Could Ease Multi-Trillion-Dollar Deal
3 articles · Updated · The Motley Fool · Jul 31
Summary
Tesla has reportedly been structured so its China business can be severed from its U.S. operations, a step seen as preparing the company for a merger with SpaceX.
The separation could reduce geopolitical and regulatory friction around combining Tesla with SpaceX, whose military-linked contracts have been viewed as a major obstacle in China.
A deal would unite two Musk companies already tied through xAI, Terafab and extensive commercial links, potentially streamlining capital-heavy AI spending across vehicles, chips and space systems.
Musk controls about 20% of Tesla voting power but more than 80% at SpaceX, and a China spin-off or sale could also reshape Tesla's valuation and strengthen his influence in a combined company.
Tesla's China unit accounts for roughly 20% of vehicle sales and about half of production, making any separation a high-stakes move even if the merger ultimately fails.