China’s 2026 automotive data guide could complicate a Tesla-SpaceX merger by treating some information stored in China as exported when people or organizations abroad query, retrieve, download or export it.
Issued by eight Chinese authorities on Feb. 3, the guide also covers China-collected data sent abroad. It provides different compliance paths, including security assessments for important data and specified volumes of personal information. The guide does not address either company or a proposed transaction; any effect on a combined business is an implication of its access rules.
A Chinese vehicle-data regulation that took effect in 2021 already requires important data to be stored domestically, with a security assessment required before it is transferred abroad. Tesla’s China privacy notice says personal data collected through its China operations is stored in the country and overseas transfers follow applicable law. The notice says driver-assistance camera data is processed locally by default; users may opt in to sharing camera content for fleet learning, subject to local law.
At SpaceX’s Oct. 20 third-quarter earnings webcast, SpaceX CEO Elon Musk said shareholders had asked both companies to form committees of independent directors. The committees had not settled on transaction terms, he said, and a merger was not assured. Assuming a deal was certain, Musk said, “would be overstating it.”
Tesla reported $20.962 billion in 2025 revenue by product sales location in China, out of $94.827 billion worldwide. The Shanghai municipal government said the factory delivered 851,000 vehicles that year, equal to 52% of Tesla’s global deliveries. SpaceX’s prospectus says about one-fifth of its 2025 revenue came from U.S. federal agencies. The company describes Starshield as a government network for national security uses, including Earth observation and secure communications.
Reuters reported that analysts have discussed data firewalls or separating Tesla’s China business through a spinoff or sale. Christopher Tang, a professor at UCLA Anderson School of Management, told Reuters, “China will use it as leverage. They have the bargaining power right now.” Reuters also reported that Ioannis Kokkoris, a professor at Queen Mary University of London, suggested Beijing might seek access to strategic technology or commitments to retain manufacturing and investment. Those are expert scenarios, not confirmed government demands. Any separation or limits on data access could affect Tesla’s China operations, but the companies have announced no merger structure or cost estimate.
Musk said the committees must develop terms before shareholders can vote. No date has been announced for a separate shareholder vote.
