--- title: "A Tesla/SpaceX Merger Could Create a Big Mess in China: TDS" date: "2026-07-31" modified: "2026-07-31" authors: - name: "Adam Ismail" job_title: "Senior Editor" link: "https://www.thedrive.com/authors/adam-ismail" url: "https://www.thedrive.com/news/a-tesla-spacex-merger-could-create-a-big-mess-in-china-tds" categories: - "News" - "The Downshift" tags: - "Tesla" --- # A Tesla/SpaceX Merger Could Create a Big Mess in China: TDS ![Tesla cars in production in Shanghai]() *\Xinhua News Agency via Getty Images\* Welcome to *[The Downshift]()*, or TDS for short, *The Driveโ€™s* morning news roundup bringing you the biggest automotive headlines from around the world. *The Downshift* recaps news briefly, with links to full stories for those seeking more info. Hereโ€™s your bulletin for Friday, July 31, 2026. โœ‚๏ธ Tesla has reportedly considered selling off its business in China because of the possibility of a merger between the EV maker and SpaceX. The latter's military contracts mean that uniting the two companies, when one is significantly active in China, could lead to regulatory repercussions. For their part, both Tesla China and CEO Elon Musk have dismissed the report. *\[[Wall Street Journal](), [CarNewsChina]()\]* ๐Ÿ“ˆ Rivian just enjoyed a very solid second quarter, with revenue increasing 27% year-over-year as it outperformed Wall Street estimates. The company is now projecting to reach 70,000 deliveries by year's end, up from 65,000, off the back of the R2's strong launch. *\[[Automotive News]()\]* ๐Ÿญ The earthquake that struck Japan earlier this week has caused manufacturing pauses at Toyota, Nissan, Mitsubishi, and Daihatsu facilities, as well as at a Honda motorcycle plant, as key suppliers including Renesas and Aisin work through disruptions. These stoppages are generally expected to last through the first week of August. *\[[Automotive News]()\]* ๐ŸŒ Ford CEO Jim Farley told staff in a company town hall that the automaker expects Chinese makes to enter the U.S. market in five to 10 years, despite numerous laws in the making to prevent their entry. *\[[Automotive News]()\]* ๐Ÿš– NHTSA has granted Zoox approval for limited commercial deployment of its steering-wheel-free robotaxis. This means the company may begin charging for rides with these cars, and that's slated to begin first in Las Vegas before rolling out to other cities. *\[[Reuters]()\]* โšก 22% of new-car buyers in California took home hybrids during the first-half of 2026, compared to 16% that bought battery EVs, according to new data. *\[[Automotive News]()\]* ๐Ÿ Weekend races to watch (all times Eastern): - **WRC Rally Finland:** All weekend long on Rally.TV - **Supercars Championship at Perth (Race 1):** Saturday at 12:20 a.m. on Racer Network - **Formula Drift Pro Class Top 16 at Indianapolis:** Saturday at 7 p.m. via [livestream]() - **IMSA SportsCar 6 Hours of Road America:** Sunday at 11:30 a.m. on Peacock *Got a tip or feedback for TDS? Reach out to tips@thedrive.com* ## Author Adam is a Senior Editor at The Drive, concentrating on curating and developing the site's slate of daily journalism, from initial pitch to final copy edit. When he's not at his desk researching leads and working with writers, he's testing vehicles or reviewing racing games, new and old. He joined The Drive in 2023, following seven years of covering consumer technology and cars. A car lover and gamer since his earliest memories, Adam came to know the automotive world through video games. First it was Daytona USA, Sega Rally, and Ridge Racer; then came Need For Speed, which inspired an encyclopedic knowledge of '90s supercars, and, of course, Gran Turismo. If not for them, he'd assuredly be doing something else right now. Adam is based in the suburbs outside Philly, where there are ample roads for his hot hatch to stretch its legs. In his car, he's probably listening to indie rock, drum and bass, or Yankees baseball. ### Author social links [Bluesky]() [Instagram]() [LinkedIn]()