SHANGHAI/BEIJING, July 31 (Reuters) - Tesla is considering a separation of its China business to pave the way for a potential merger with SpaceX, the Wall Street Journal reported, citing a person familiar with the talks.

Qwen AI model is being tested across Tesla (TSLA) vehicles in China, local Chinese media outlet chinastarmarket.cn reported on Friday. The AI model is being tested across Tesla’s in-vehicle infotainment system in China and is about to be integrated into the vehicles.

In a remarkable twist, former Toyota CEO Koji Sato is now suggesting that Japan's carmakers should share parts. It won't be an easy sell.

A China carveout could reduce regulatory complications related to SpaceX’s U.S. defense work and possible Beijing scrutiny.