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

In Brief Posted: 6:45 AM PDT · July 31, 2026 Image Credits: ohannes Neudecker/picture alliance / Getty Images Sean O'Kane Tesla reportedly might sell its China business ahead of a SpaceX merger Tesla is reportedly considering cleaving off its entire business in China to grease the wheels of a merger with SpaceX, according to the Wall Street Journal. The newspaper reports that “some Tesla executives have been told to prepare for a separation of the China business,” which could include a “spinoff, sale or closure,” citing unnamed sources. The company reportedly would be able to do this fairly quickly because CEO Elon Musk had already tasked executives to prepare for a split in the event that Beijing invades Taiwan . Separating China from Tesla’s global operations could make it easier to integrate the company into SpaceX, which is a defense contractor that has to follow strict rules around citizenship and national security. That would also be a major concession. China has grown to dominate Tesla’s business, not only as a market for its vehicles, but as a production hub that serves Asia more broadly, and also Europe. Topics Elon Musk , Space , SpaceX , Tesla , Transportation October 13 – 15 San Francisco Scale faster. Grow your portfolio. Gain practical expertise. No matter your goal, Disrupt can empower you. Save up to $330 toda y! REGISTER NOW Newsletters See More Subscribe for the industry’s biggest tech news TechCrunch Daily News Every weekday and Sunday, you can get the best of TechCrunch’s coverage. TechCrunch Mobility TechCrunch Mobility is your destination for transportation news and insight. Startups Weekly Startups are the core of TechCrunch, so get our best coverage delivered weekly. StrictlyVC Provides movers and shakers with the info they need to start their day. No newsletters selected. Subscribe By submitting your email, you agree to our Terms and Privacy Notice . Related Venture Repeat founder Ryan Williams raises $10M seed for an AI startup for private credit managers Dominic-Madori Davis 2 hours ago AI Anthropic says its own AI models breached three companies during security tests Kirsten Korosec 13 hours ago Hardware Apple stockpiles inventory as it braces for ‘significant supply constraints’ Amanda Silberling 14 hours ago Latest in Transportation In Brief Tesla reportedly might sell its China business ahead of a SpaceX merger Sean O'Kane 1 minute ago In Brief Florida plans to build air taxi pads using $200M intended for EV chargers Tim De Chant 19 hours ago Transportation Tesla made its 10 millionth EV Sean O'Kane 22 hours ago