Tesla weighs selling China unit ahead of possible SpaceX merger

The Wall Street Journal reported on July 30, 2026 that Tesla executives were directed to prepare options, including a spin-off, sale, or closure, for separating the company's China business, a move reportedly seen internally as a precursor to a potential Tesla-SpaceX merger. Elon Musk publicly denied the report as fake news, and Tesla's China unit issued its own denial, though merger speculation between the two companies has persisted for months.