Elon Musk has rejected reports claiming Tesla was considering a sale of its China business. According to the report referenced by Reuters, the idea was linked to speculation that such a move could help clear the way for a possible merger involving SpaceX. Musk responded by dismissing the claim as fake news.

The reports drew attention because Tesla’s China operations are central to the company’s global manufacturing network. The Shanghai Gigafactory is one of Tesla’s most important plants, serving as a major production base and an export hub for vehicles sent to other markets.

Any suggestion that Tesla might exit or restructure such a key part of its business would naturally raise questions among investors and industry watchers. China remains a critical market for electric vehicles, and Tesla’s position there has been closely watched as competition and policy pressures continue to evolve.

For now, Musk’s public denial appears aimed at shutting down the speculation. Based on his response, there is no indication from Tesla that it is pursuing a sale of its China operations or advancing the merger scenario described in the reports.