Tesla executives are preparing preliminary plans to separate the company’s China operations—through a spinoff, sale, or closure—according to The Wall Street Journal. China accounted for about 18% of Tesla sales in the first half of 2026. Any separation would affect Shanghai manufacturing, battery supply chains, semiconductor access, and data tied to roughly two million Chinese customers. The move is being considered amid a potential Tesla–SpaceX combination. SpaceX’s U.S. defense exposure—20.9% of its 2025 business—creates national-security concerns, while supplier audits are tightening restrictions on Chinese components, equipment, and personnel. What to watch: Beijing and U.S. regulatory responses, the fate of Tesla’s Shanghai factories, and whether supply-chain decoupling accelerates across EVs and aerospace. #Tesla #SpaceX #USChina #SupplyChains #NationalSecurity