Elon Musk has denied a rumor that Tesla would sell its China operations to raise money for a merger with SpaceX. The claim, which circulated online in recent days, suggested the electric-vehicle maker would offload its business in the world's largest auto market to fund a combination with the rocket company.
The rumor in question
The rumor did not cite any named sources or official documents. It described a scenario where Tesla would exit China entirely, selling factories and sales operations to an unnamed buyer. Proceeds would then be used to finance a merger between Tesla and SpaceX, two companies Musk controls but keeps separate. Musk owns about 13% of Tesla and roughly 42% of SpaceX, according to public filings and reports.
Why China matters to Tesla
Tesla's China operations are a major part of its global business. The company operates a Gigafactory in Shanghai that produces Model 3 and Model Y vehicles for the domestic market and for export. In 2023, Tesla delivered more than 600,000 vehicles in China, accounting for roughly a third of its total deliveries. Selling that business would represent a dramatic strategic shift.
Musk's response
Musk denied the rumor directly, calling it false. He did not provide additional context or explain why the rumor might have started. The denial came on a platform where Musk often addresses speculation about his companies. No further details were offered about Tesla's plans in China or any potential merger with SpaceX.
The rumor's origin remains unclear. Neither Tesla nor SpaceX has issued a formal statement beyond Musk's denial. The two companies have occasionally shared technology and personnel, but a full merger has never been publicly discussed by either company's leadership.
