Tesla Inc. has held internal discussions regarding the potential spin-off of its Chinese division, while CEO Elon Musk considers a merger with another of his ventures, SpaceX, the Wall Street Journal reported on Thursday.
According to the WSJ, citing people familiar with the matter, a number of Tesla executives have been tasked with preparing for a potential separation of the Chinese business, while advisors are discussing options including spinning it off into a separate company, selling it, or shutting it down.
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These developments come amidst growing speculation about a possible combination of Musk’s various ventures—SpaceX and Tesla—under a single brand. Musk responded positively to the idea when asked about it during a recent Tesla investor call, though he made no concrete commitments.
“Obviously, we can’t discuss, you know, combining companies and the like during investor calls… That has to be done following proper procedures,” Musk told investors and analysts.
According to the WSJ, it is unclear how quickly Tesla could spin off or sell its Chinese business, and the publication notes that plans could change.
Rumors of a SpaceX-Tesla merger intensified following the latter’s high-profile NASDAQ debut in June. Musk has prior experience combining his companies: earlier this year, he integrated his social media and artificial intelligence venture, xAI, into SpaceX.
Additionally, in 2016, Musk merged the solar energy company SolarCity with Tesla.
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