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International Business Times

Business

How SpaceX's Break With China Could Clear The Path To A Tesla Merger

SpaceX Tesla Inc. Elon Musk China Supply chain United States Nikkei

SpaceX, Twitter and electric car maker Tesla CEO Elon Musk attends an event during the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition centre in Paris, on June 16, 2023. (Credit: Joel Sagat/AFP)

KEY POINTS

SpaceX is tightening controls over China-related supply chain risks as its role in U.S. defense and national security programs expands.
A potential Tesla merger could face China-related hurdles, with Tesla's manufacturing footprint and suppliers deeply tied to the country.
Investors are watching for catalysts after SpaceX's stock decline, while prediction markets continue to price in a possible Musk-led combination of the two companies.

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