Musk Denies Reports of Tesla Selling China Business
Claire Weston
Musk called the Wall Street Journal's report on Tesla considering a sale of its China business "fake news," but he himself has not ruled out a Tesla–SpaceX merger — the very scenario that triggered the report in the first place.
What exactly did Musk deny?
Musk posted on X on Friday, calling the sale report "fake news" and saying it "never came up in any discussion."
He was responding to a specific Wall Street Journal report that Tesla executives had been told to prepare for a divestiture of the China business.
This means → Musk denied the specific act of selling China operations, but did not deny the merger discussions themselves.
What did the Wall Street Journal report?
The Journal reported that Tesla executives were told to prepare for a divestiture of the China business to facilitate a potential Tesla–SpaceX merger.
Advisors discussed multiple options: spin-off, sale, or shutdown of the China operations.
In plain terms = the story was not "Tesla wants out of China" — it was "if the SpaceX merger goes ahead, the China business becomes an obstacle."
Why does a merger clash with China operations?
SpaceX is a major U.S. defense contractor; Tesla runs large-scale manufacturing in China.
Combining the two would put U.S. defense contracts and Chinese factory operations under one roof — triggering serious geopolitical and regulatory scrutiny.
This reflects a deeper unresolved question: the issue is not whether Tesla wants to sell its China business, but that no clear path exists for handling it if the merger moves forward.
What has Musk himself said about a merger?
On last quarter's earnings call, Musk did not rule out a Tesla–SpaceX merger.
He acknowledged growing overlap between the two companies but said, "We can't discuss merging companies on an earnings call — it has to go through proper procedures."
This means → the merger topic is not fabricated — Musk himself acknowledged the overlap, but refused to discuss details in a public forum.
Content is for reference only, not financial advice.