New York
Tesla Chief Executive Officer Elon Musk has dismissed as “fake news” a report that the electric-vehicle maker was considering separating or selling its China business ahead of a possible merger with his space company, SpaceX.
The report said Tesla advisers had discussed several options for its China operations, including a spin-off, sale or possible closure. It also suggested that company executives were examining ways to separate Tesla’s China business from its operations elsewhere amid growing geopolitical and regulatory concerns.
Responding on his social media platform X, Musk strongly denied the report, saying the issue had never been discussed and describing the claim as “absurdly fake news.”
Speculation over a possible merger between Tesla and SpaceX has increased as the two companies expand into overlapping areas involving artificial intelligence, robotics, energy, autonomous technology and advanced manufacturing.
However, any combination of Tesla and SpaceX could face significant regulatory and geopolitical challenges, particularly in China. SpaceX is a major US defence contractor involved in national-security and satellite programmes, while Tesla operates wholly owned manufacturing facilities in China.
Tesla’s Shanghai Gigafactory is the company’s largest and most productive manufacturing facility globally. The plant has an annual production capacity of more than 950,000 vehicles and serves as a major export hub for Europe, Canada and the Asia-Pacific region.
China is Tesla’s second-largest market after the United States, although the company faces strong competition from domestic electric-vehicle manufacturers, particularly BYD.
Reports said Tesla executives had previously explored ways to create greater operational separation between its US and China businesses to reduce risks arising from possible geopolitical tensions. Discussions reportedly included establishing separate office systems and a dedicated sales entity for exports from the Shanghai facility.
Tesla has not announced any plan to sell, spin off or close its China operations. Shares of the company rose about two per cent in premarket trading following Musk’s response.