Tesla CEO Elon Musk has firmly denied speculation that his electric vehicle company plans to sell or spin off its business unit in China. The rumors claimed this divestment was intended to pave the way for a strategic merger with aerospace company SpaceX. Musk directly labeled the reports as fake news.
A similar denial came from internal sources at Tesla China. In an official statement to the local Chinese media outlet The Paper, company representatives emphasized that the news of the business unit divestment is completely groundless. The issue had previously sparked a stir following reports from international media claiming Tesla was considering a major restructuring in the East Asian market.
For Tesla, the Chinese market holds crucial value in its global supply chain. Gigafactory Shanghai currently serves as a primary production hub, not only meeting domestic demand but also exporting electric vehicles to the Asia-Pacific region, Europe, and Canada. Additionally, the Land of the Red Dragon is recorded as Tesla's second-largest market after the United States.
Although the merger rumors have been denied, market players continue to speculate on the potential for closer collaboration between Tesla and SpaceX in the future, particularly in the development of artificial intelligence (AI), robotics, and autonomous systems. Following this clarification, Tesla's stock closed up by 3.53 percent to USD 308.85, while SpaceX's stock experienced a minor correction of 0.31 percent to USD 112.20.
