TLDR Elon Musk denied a Wall Street Journal report claiming Tesla could sell its China business. The report said the move would help pave the way for a possible SpaceX merger. Tesla’s China u
Elon Musk has denied a Wall Street Journal report about Tesla’s business in China. The report claimed Tesla was considering selling or spinning off the unit.
According to the report, the move would help clear the way for a future merger between Tesla and SpaceX. Musk called the story “fake news” in a post on X.
He also said there have been no talks about selling or spinning off Tesla’s China operations. Musk described the report as “absurdly fake news.”
BREAKING: Elon Musk denies the WSJ report that Tesla is weighing a sale/spin-off of its China business to clear the path for a SpaceX merger.
Tesla China also confirmed the report is false.
What do you think — pure speculation or smoke before the fire?
$TSLA$SPCX…
— Rednirav (@CryptoRednirav) July 31, 2026
Tesla’s China division gave its own response as well. It told a reporter from The Paper that the report contained false information.
The Wall Street Journal report focused on geopolitical risk. It pointed to SpaceX’s role as a major U.S. defense contractor as a reason for concern.
The report said Tesla executives were told to prepare for a possible separation of the China business. Musk has not confirmed any part of that claim.
Tesla’s Shanghai plant is one of the company’s most important factories. It ships cars to Europe, Canada, and the Asia-Pacific region.
China is also Tesla’s second largest market in the world. The United States remains its largest.
Talk of a Tesla and SpaceX merger has been building for months. Musk brought up the idea again during a recent Tesla earnings call.
He pointed to growing overlap between the two companies. This includes shared work in artificial intelligence and manufacturing.
Traders on prediction platforms have been watching the merger talk closely. Kalshi data shows close to 49% odds of a Tesla and SpaceX merger happening before May 2027.
Tesla stock closed 3.53% higher on Thursday at 308.85 dollars. SpaceX stock closed 0.31% lower at 112.20 dollars.
SpaceX shares have fallen to their lowest closing price on record. The stock has lost more than half its value since its all time high in June.
The drop came during a wider sell off in AI related stocks. Despite this, some investors are still buying in.
Cathie Wood’s ARK Invest has continued adding Tesla and SpaceX shares. The firm has bought tens of millions of dollars worth of stock even as AI names slide.
Wood pointed to SpaceX’s recent Starship splashdown as a positive sign for the company. Musk and Tesla have not given a timeline for any future merger decision.
The post Elon Musk Slams Tesla China Sale Report as “Fake News” appeared first on Blockonomi.
