Elon Musk on Monday dismissed a Wall Street Journal report that Tesla is considering selling or spinning off its China operations as part of a potential merger with SpaceX. The Tesla CEO called the story 'fake news' in a social media post.
The Report and the Denial
The Wall Street Journal reported that Tesla was exploring a sale or spinoff of its China business, with the proceeds potentially used to fund a merger with SpaceX. The report cited unnamed people familiar with the matter. Musk responded directly on his social media platform, writing: 'Fake news.' He did not elaborate further.
Tesla's China unit also issued a statement dismissing the report as false. The company did not provide additional details or clarify whether any such discussions had ever taken place.
Why the Report Raised Eyebrows
Tesla's China business is a critical part of its global operations. The company operates a massive factory in Shanghai that produces vehicles for the domestic market and for export. A sale or spinoff would have been a major strategic shift. The idea of merging Tesla with SpaceX, Musk's private rocket company, has been floated by investors before, but Musk has never publicly endorsed it.
The WSJ report did not specify a timeline or potential buyers for the China business. It also did not explain how a merger with SpaceX would be structured, given that SpaceX is privately held and Tesla is a publicly traded company.
Musk's History With the WSJ
This is not the first time Musk has publicly disputed a Wall Street Journal story. He has previously called the newspaper's reporting inaccurate on topics ranging from Tesla's finances to his personal conduct. The Journal has stood by its reporting in past disputes.
As of now, the Journal has not responded to Musk's latest denial. Tesla's stock price saw no major movement following the exchange.
What Happens Next
The Wall Street Journal has not retracted or corrected its report. Tesla continues to operate its China business as usual. No further statements from Musk or Tesla are expected unless the story gains new traction. The report itself remains unconfirmed by any official source.
