Tesla executives are preparing for a potential separation of the company's China business. The region currently serves as Tesla's second-largest market.
The move aims to facilitate a possible merger between the electric vehicle maker and SpaceX, Elon Musk's aerospace company. Advisers are evaluating several options for the unit, including a sale, spinoff, or complete closure.
This strategic shift seeks to resolve geopolitical concerns and regulatory hurdles. SpaceX currently operates as a primary U.S. defense contractor. The timeline for the separation remains unclear and plans may still change.