WSJ: Musk prepared Tesla China business for separation

Tesla CEO Elon Musk structured Tesla's China operations so they could be separated from the company's U.S. business in the event of escalating geopolitical tensions between the United States and China, according to The Wall Street Journal. 

Musk reportedly instructed Tesla executives in recent years to organise the company with what he described as a "laser" between its U.S. and China businesses. The aim was to ensure that, in the event of geopolitical conflict between the two countries, at least the U.S. portion of Tesla could continue operating independently.

The report said one reason for the corporate structure was the possibility of a future merger between Tesla and SpaceX, which holds contracts with the U.S. Department of Defence. According to The Wall Street Journal, the presence of a Chinese subsidiary within a merged company could raise concerns among U.S. authorities because of SpaceX's Pentagon work.

Musk has denied the report, saying Tesla has no plans for such a merger.

By Sabina Mammadli