Elon Musk Denies Claim Tesla Would Sell Its Chinese Unit to Enable a SpaceX Merger, Calling It “Absurdly Fake News”

Elon Musk has rejected a new round of merger speculation involving Tesla and SpaceX, dismissing a report that claimed the electric-vehicle maker was considering selling its Chinese business. In comments carried in a Yahoo Finance report, Musk characterized the story as “absurdly fake news,” pushing back on the idea that Tesla would restructure its China operations to create a path for a deal with SpaceX.

The report, as summarized by Yahoo Finance, suggested a scenario in which Tesla’s Chinese operations could be sold and the resulting change in ownership or control might be used to support a potential merger concept involving SpaceX. Musk’s response directly targeted the premise, indicating he viewed the claims as not credible.

No additional deal framework was outlined in the Yahoo Finance posting beyond the allegation it addressed, and Tesla did not appear in the report to provide a separate official statement clarifying whether it was looking at any transaction related to the China unit or any corporate combination involving SpaceX. For investors and analysts, the key takeaway from Musk’s comments is the absence of confirmation from the company, paired with an explicit denial from the CEO.

Rumors that link high-profile companies that share a common executive are not new, particularly when the CEO is known for pursuing multiple technology and industrial ventures. In cases like this, market attention can shift quickly from operational updates, such as vehicle deliveries and manufacturing announcements, to corporate-structure questions that are harder for outside observers to verify. Musk’s dismissal is therefore notable not just for what he said, but for the speed with which he attempted to close off the storyline.

For Tesla, the China market has remained central to its global volume strategy, and corporate moves involving the region can carry outsized implications for production, supply chains, and regulatory compliance. Even so, the Yahoo Finance report did not provide verifiable specifics regarding any planned sale, such as timing, valuation, counterparties, or whether any discussions were underway. Without those details, the story largely functioned as a claim about intent, and Musk’s denial cuts off that narrative at the top.

The SpaceX angle adds another layer to the speculation. SpaceX’s development trajectory depends on long-horizon funding, engineering milestones, and regulatory clearances that differ sharply from the automotive industry’s near-term manufacturing and sales cycles. As a result, any merger-like concept between an automaker and a launch-and-space company would require a complicated structure and would likely be scrutinized by regulators and investors in different ways. In this case, Musk’s response suggests there is no basis for treating the claim as an emerging transaction.