Tesla considers separating China business amid SpaceX merger talks: Report

newsbytesapp.com Jul 31, 2026

Tesla considers separating China business amid SpaceX merger talks: Report

Curated by Shubham · TechCapsules · Jul 31, 2026

AI-summarised brief · reviewed before publication

Tesla is reportedly weighing a separation of its China operations as it explores a potential merger with SpaceX, according to the Wall Street Journal. The company’s advisers have examined several structures, including a spin‑off, outright sale or even a shutdown of the Chinese unit, though no timeline has been set and discussions remain preliminary. The move reflects Elon Musk’s long‑standing effort to create a clear operational divide between the U.S. and China to shield Tesla from escalating geopolitical friction between Washington and Beijing. If a merger proceeds, disentangling the China business could become a prerequisite to align corporate governance and regulatory approval across the two entities, while preserving Tesla’s exposure to the world’s largest auto market.

💡 Why It Matters

· A split would force Tesla to renegotiate its foothold in the world’s biggest EV market just as it seeks to combine forces with SpaceX, testing the viability of Musk’s dual‑company strategy under tightening U.S.–China tensions.

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SpaceX Rocket to Crash into Moon at 7 Times Speed of Sound…

A drifting upper stage of a SpaceX launch vehicle will strike the Moon on Wednesday at roughly 5,400 mph—about seven times the speed of sound—creating an impact comparable to three tons of TNT. The collision, predicted to occur near the sunlit western limb close to Einstein Crater, will excavate a crater roughly 90 feet wide and 16 feet deep and loft a plume of dust and debris that could remain visible to telescopes for minutes. NASA’s Lunar Reconnaissance Orbiter and South Korea’s Danuri orbiter will capture before‑and‑after images, with Danuri passing within a mile of the rocket two minutes prior to impact. Experts say the event, the second accidental lunar crash after a Chinese rocket fragment in 2022, offers a rare chance to study debris‑impact hazards for future lunar missions.

💡 The crash provides a real‑time laboratory to assess how stray rocket stages might endanger astronauts and equipment on the Moon’s surface.

space.com · Aug 1

SpaceX’s Starship seen in space by next-gen Starlink satellite (video)

SpaceX’s Starship completed its 13th test flight on July 24, 2026, deploying the first batch of functional Starlink V3 satellites into space. Six of these next-generation spacecraft carried cameras to monitor the upper stage’s heat shield, capturing detailed video of the vehicle’s ascent. The footage, released on July 31, shows the 171-foot-tall Ship firing three Raptor engines and using reaction control thrusters. While the upper stage successfully splashed down in the Indian Ocean and remained intact, the Super Heavy booster experienced issues, landing with only five engines firing. The 20 deployed satellites re-entered Earth’s atmosphere shortly after deployment. SpaceX plans to operate a constellation of 100,000 Starlink V3 satellites, relying on Starship for launches. The rocket is scheduled for NASA’s Artemis III mission in mid-2027 and Artemis IV in late 2028, marking a critical step toward operational status for the fully reusable megarocket.

💡 The successful deployment and imaging of Starlink V3 satellites validate Starship’s dual role as both a heavy-lift launch vehicle and a critical infrastructure builder for SpaceX’s internet empire. This integration accelerates the path to a 100,000-satellite constellation, directly enabling the high-throughput connectivity required for future lunar missions.

space.com · Aug 1

SpaceX launches 24 Starlink satellites to orbit from California (photos)

SpaceX successfully launched 24 Starlink internet satellites into low Earth orbit from Vandenberg Space Force Base in California on Friday, July 31. The Falcon 9 rocket lifted off at 11:08 p.m. EDT, deploying the spacecraft 61.5 minutes later. The mission utilized booster B1081, marking its 26th flight, which successfully landed on the droneship "Of Course I Still Love You" in the Pacific Ocean. These satellites join the existing Starlink megaconstellation, which now comprises more than 10,800 spacecraft. This launch represents the 69th dedicated Starlink mission for SpaceX in 2026. The company has conducted a total of 89 Falcon 9 missions this year. Additionally, SpaceX has executed three other launches in 2026, including one Falcon Heavy mission and two test flights of its Starship megarocket, continuing its rapid deployment schedule for global broadband coverage and future exploration goals.

💡 The reuse of booster B1081 for its 26th mission underscores SpaceX’s operational efficiency, drastically reducing launch costs compared to single-use rockets. This high-frequency cadence allows the company to rapidly expand its global internet infrastructure while maintaining a robust pipeline for other critical missions.

triblive.com · Aug 1

Elon Musk loses $640 billion as his fortune slumps to pre-SpaceX IPO…

Elon Musk’s net worth has plummeted to $684 billion, falling below pre-SpaceX IPO levels despite a recent successful Starship launch. According to the Bloomberg Billionaires Index, his wealth dropped from a peak of $1.33 trillion on June 16, marking a decline exceeding $600 billion in just over a month. SpaceX shares have tumbled 46% to a record low of $108.37, with short interest rising sharply ahead of the company’s first public quarterly earnings report. Simultaneously, Tesla stock fell 17% following second-quarter results that revealed a cash-negative quarter and $5.8 billion in capital expenditures. Musk’s Tesla holdings are now valued at $129 billion, while his SpaceX stake stands at over $550 billion. The combined downturn in both major companies has erased more wealth than any other individual on Bloomberg’s list, excluding Musk himself, as investors react to heavy spending and market volatility.

💡 The unprecedented scale of this wealth erosion exposes the extreme volatility inherent in founder-led mega-cap valuations. It underscores how rapidly investor sentiment can shift when aggressive capital expenditure clashes with immediate profitability concerns.

techcrunch.com · Jul 31

SpaceX won’t remove all of xAI’s unpermitted turbines for another year

SpaceX announced it will not fully remove the unpermitted gas turbines powering its xAI data centers near Memphis until July 2027, as it shifts to a permanent 1.2‑gigawatt natural‑gas plant. The company currently operates 69 turbines that have been running for months, while the new plant will feature 41 turbines ranging from 16.48 to 50 MW. The turbines, located south of Memphis in a highly polluted region, have been sued by the NAACP and Southern Environmental Law Center for lacking permits. SpaceX claims the turbines are exempt because they remain on trailers, but federal rules require permits for their size and use. The new plant is part of a $2.8 billion procurement plan over three years, following SpaceX’s February acquisition of xAI and its recent purchase of APR Energy.

💡 The delay underscores the tension between rapid tech expansion and environmental compliance, revealing how large data‑center operators navigate regulatory gaps. It also signals a broader shift toward more permanent, regulated power infrastructure in the industry.

carnewschina.com · Jul 31

Tesla labels WSJ report of China business separation “fake news”

Tesla has denied a Wall Street Journal report that it is planning to spin off, sell, or shut down its China operations to enable a possible merger with SpaceX. The article cited unnamed sources claiming Tesla executives were preparing a separation of the Shanghai Gigafactory, including forming an independent sales entity for overseas exports and imposing “firewalls” on Chinese staff. Tesla China officials told National Business Daily, The Paper and other Chinese outlets that the story was false, and CEO Elon Musk labeled the claims “fake news” on X. The speculation arose amid heightened talk of a Tesla‑SpaceX merger following SpaceX’s record‑breaking $75 billion IPO, though Musk said any such deal would require formal procedures and was not a topic for the earnings call.

💡 The denial underscores Tesla’s intent to keep its massive Chinese manufacturing base intact, a critical asset for global EV supply chains.