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Over the past few years, Elon Musk has directed Tesla executives to create a clear operational divide between its US and China business. This was done to protect the company from rising geopolitical tensions between Washington and Beijing. Now, this strategy is taking on more importance as Tesla prepares for a possible separation of its China business ahead of any merger talks with SpaceX. Musk has long been worried about Tesla’s reliance on China for lithium iron phosphate (LFP) battery cells and its reliance on semiconductors from Taiwan Semiconductor Manufacturing Co. (TSMC). He fears that a possible conflict over Taiwan…
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