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Elon Musk denies Tesla's potential China business sale ahead of SpaceX merger, citing "fake news" with significant regulatory hurdles and geopolitical
Elon Musk has denied a report that Tesla is considering a sale of its China business ahead of a potential merger with SpaceX, calling it "fake news" [1]. The report had suggested that some Tesla executives had been told to prepare for a separation of the China business, with options including a spinoff, sale, or closure [2]. The denial comes as speculation mounts about a potential merger between Tesla and SpaceX, with Musk having previously acknowledged the growing overlap between the two companies [3].
| At a glance | |
|---|---|
| Company | Tesla |
| China Business | $10 billion+ in annual revenue [2] |
| SpaceX | Major US defence contractor |
| Merger Speculation | Growing overlap between Tesla and SpaceX [3] |
The potential merger between Tesla and SpaceX would raise significant regulatory hurdles, particularly in China, where Tesla operates wholly owned manufacturing facilities [2]. SpaceX, as a major US defence contractor, is involved in national security and satellite programs, which could create geopolitical tensions with China [2]. Musk's denial of the report suggests that Tesla is not currently considering a sale of its China business, but the company's future plans remain unclear [1].
Tesla's China business is a significant contributor to the company's global revenue, with over $10 billion in annual revenue [2]. The company's Shanghai factory is one of its most important manufacturing facilities, producing over half of Tesla's global output [2]. A potential merger with SpaceX could create new opportunities for Tesla, but it would also require careful navigation of regulatory and geopolitical complexities [3].
The denial of the report by Musk has significant implications for Tesla's future plans and strategy, particularly with regards to its China business. As the company continues to navigate the complexities of its relationship with SpaceX, it remains to be seen how the situation will unfold and what the ultimate outcome will be for Tesla's China operations.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jul 31, 2026 · How we report
As of September 11, 2026, Tesla owners can submit a claim online via the Tesla Idle Fee Class Action Settlement website or by mailing a printable form to the Settlement Administrator in Santa Ana, California.
To qualify, a Tesla owner must have received their vehicle in California before December 16, 2016, continued owning it after that date, and been a California resident as of June 21, 2021, while also having purchased a vehicle specifically listed as Supercharger Enabled or Hardware.
The deadline for eligible Tesla drivers to file a claim is September 25, 2026.
Tesla charges idle fees at Supercharger stations only when the station is at 50% capacity or higher, providing a 5-minute grace period after charging completes before fees begin to accrue.