Tesla denies any plan to split its Chinese operations

Tesla has rejected circulating reports that it intends to separate its Chinese business ahead of a possible merger with SpaceX. The rumor, cited by the Wall Street Journal and reported by Reuters, suggested Elon Musk had instructed senior managers to explore a spin‑off, a direct sale, or a shutdown of the Shanghai Gigafactory. Musk called the story "absurdly fake news" on X and said no such discussions have taken place.

The Shanghai plant, Tesla's largest factory, produces over 950,000 vehicles a year and accounts for more than half of the company's global deliveries, with more than 95% of its components sourced locally. The speculation briefly lifted Tesla shares about two percent in pre‑market trading before the denial. Musk has previously spoken about keeping the U.S. and China segments separate to mitigate geopolitical risk, but no concrete plan to divest the Chinese operations has been announced.