Musk Refutes Tesla China Unit Sale Rumors as "Fake News"

WSJ Reports: "Tesla Considering Sale of China Business"
"Amid Possible SpaceX Merger Discussions"

Elon Musk, CEO of Tesla, has firmly denied rumors that Tesla is considering selling its business unit in China, calling the reports "utterly ridiculous fake news." Previously, the Wall Street Journal (WSJ) in the United States reported that Tesla was reviewing options to separate or sell its Chinese operations in preparation for the possibility of a merger with SpaceX.

On July 30 (local time), Musk responded to the WSJ report through his X account (formerly Twitter), stating, "It has never even been discussed," flatly refuting the claim.

Elon Musk, CEO of Tesla. The Asia Business Daily DB

According to the WSJ, citing unnamed sources, some executives at Tesla were instructed to prepare for a possible separation of the China business should a merger with SpaceX occur. Tesla’s advisory team reportedly discussed various options, including spinning off, selling, or closing down its China business.

Sources also stated that Tesla executives discussed establishing a separate sales entity to handle export volumes produced at its Shanghai plant. Currently, Tesla operates two large-scale factories in Shanghai, China.

The WSJ reported that Musk had proactively structured Tesla's operations so that its China business could easily be separated from its U.S. business, taking into account the ongoing geopolitical tensions between the U.S. and China. The intent was to ensure the survival of the U.S. business as a defense contractor, even in the event of heightened conflict between the two countries.

However, sources indicated that it remains unclear whether the spin-off or sale of the China business will actually be pursued, and there is a possibility that the plans could change.

This content was produced with the assistance of AI translation services.