Elon Musk has dismissed reports that Tesla is considering selling or spinning off its China operations to facilitate a merger with SpaceX, calling the claims "absurdly fake news." In a post on X, Musk said the idea had never been discussed.
According to a Wall Street Journal report, Tesla executives had been asked to evaluate options for the company's China business, including a spin-off, sale or closure, to address regulatory and national security concerns that could arise from combining Tesla with SpaceX.
The report said speculation has grown because SpaceX is a major U.S. defense contractor, while Tesla operates a large manufacturing base in China.
Tesla's Shanghai Gigafactory remains a cornerstone of the company's global operations, producing more than 950,000 vehicles annually and accounting for more than half of Tesla's worldwide deliveries.
Related Tweet:
Elon Musk dismissed as ‘fake news’ a report that executives at his electric vehicle company Tesla have been told to prepare for a separation of its China business ahead of a potential merger with his space exploration firm SpaceX. More here: https://t.co/iqNwHqksF7
— Reuters Business (@ReutersBiz) July 31, 2026
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