Musk rejects speculation about possible Tesla-SpaceX merger, cites China business

The discussion touches on central questions of corporate structure. Since both companies operate in different economic and legal spheres, observers assess that a merger would face significant regulatory hurdles, particularly with regard to SpaceX's militarily relevant space activities and Tesla's China exposure.

During a court hearing on the takeover lawsuit against Twitter — which Musk left after the proceedings without commenting on the allegations — those present used the opportunity to put the entrepreneur's words in context. The fact that Musk himself spoke up and let Brandon Ehrhart speak as a legal expert was interpreted as a signal of the importance of the matter.

Tesla's Shanghai plant as an export hub

At the center of the speculation recently has also been Tesla's Shanghai plant, which is regarded as an important export hub for Asian markets. A sale or spin-off of this business — as a conceivable precondition for a merger with SpaceX — would have significant impacts on the company's global supply chain.

Musk had repeatedly emphasized in recent weeks that he would focus more strongly on the China business going forward. He also pointed to a possible return to greater political influence in the United States. "Das muss mit einem angemessenen Verfahren gemacht werden", he said with regard to a potential separation of the China business.

Legally, Tesla's China business is structured through a separate entity, which would make a separation or spin-off technically complicated. Should the company nevertheless consider this step, a procedure would be needed that takes antitrust and foreign trade aspects into account. It is precisely this point that Musk underscored with his reference to a "angemessenes Verfahren".

Reactions and market expectations

The relationship between Musk and the Chinese market remains complex. While Tesla produces and sells in China, Musk has repeatedly commented on political relations between the U.S. and China. The speculation about a merger with SpaceX is therefore also an expression of the concern that closer technological interlocking could further strain already tense relations.

Analysts see the recent statements primarily as a signal to investors to temper expectations of a quick merger of the two companies. "Das muss mit einem angemessenen Verfahren gemacht werden", Musk repeated his familiar formula in this context.

Industry circles are also discussing what long-term consequences a possible separation of the China business would have for Tesla's global competitive position. The Shanghai plant produces not only for the Chinese market, but also serves as a base for exports to other Asian countries.

Outlook: What comes next

For the coming months, Musk is expected to continue publicly commenting on the strategic options of both companies. Clarity about a possible merger plan or a spin-off of the China business is unlikely to come before the conclusion of ongoing court proceedings and political consultations.

Meanwhile, it remains unclear what role the Terafab chip factory plays in the considerations. The joint Tesla and SpaceX project was cited by Ehrhart as an example of existing collaboration, suggesting that closer cooperation is already underway — even without a formal merger.