Elon Musk has publicly slammed recent media reports suggesting that Tesla is preparing to spin off or sell its Chinese operations as "absurdly fake news." The claims, which originated from a Wall Street Journal report, alleged that Tesla executives were exploring structural changes to separate the firm's China business, potentially as a precursor to a merger with SpaceX. Musk took to his social media platform, X, to categorically deny these rumors, stating that such a move has never been part of any internal discussions.

The speculation surrounding a potential combination of Tesla and SpaceX has persisted for years, fueled in part by the companies' increasing technological overlap and comments from SpaceX leadership regarding management efficiency. However, experts remain skeptical, noting that a merger would face massive regulatory and geopolitical hurdles. Given that SpaceX functions as a major U.S. defense contractor, merging with Tesla—which operates a massive, wholly-owned Gigafactory in Shanghai—would create complex national security concerns, particularly in the current climate of U.S.-China tensions. For now, the Shanghai facility remains a critical pillar of Tesla’s global supply chain, serving as a vital export hub and a cornerstone of the company’s manufacturing strategy.