Tesla is reportedly considering selling its Chinese operations to facilitate a potential merger with SpaceX, according to a report by The Wall Street Journal.
The move would involve divesting the company’s Shanghai Gigafactory, which has historically accounted for more than half of the electric vehicle maker’s global deliveries.
An analyst has previously projected a 20% upside for Tesla shares, identifying the potential merger as a key catalyst for revaluation.
Such a transaction would represent a significant restructuring of Tesla’s international footprint, aimed at simplifying the corporate architecture ahead of a combined entity with the aerospace firm.
The speculation follows earlier indications from Elon Musk that a merger between the two companies he leads is feasible, citing increasing operational overlap.
Danish media outlet Ekstrabladet previously reported Musk’s comments suggesting the strategic alignment between the EV and rocket manufacturers.
An analyst has previously projected a 20% upside for Tesla shares, identifying the potential merger as a key catalyst for revaluation.