According to a report on the Hong Kong “South China Morning Post” website on July 31, Elon Musk denied a media report claiming that Tesla is considering selling its Chinese business. Musk, CEO of Tesla and Space Exploration Technologies, wrote on the X platform on July 31: “This has never been discussed. Ridiculously fake news.” Before the richest man in the world made these remarks, the US “Wall Street Journal” reported that Tesla is considering divesting its Chinese business from its global business before it is expected to merge with space exploration technology companies, which may eventually lead to the sale or closure of its gigafactory in Shanghai. The Wall Street Journal quoted an unnamed source as saying that Musk hopes to restructure Tesla as accurately as a “laser” to resolve the potential conflict of interest issues arising from space exploration technology companies as a major US defense contractor in the face of tense US-China relations. Analysts believe Tesla's assembly plant in Shanghai will not be easy to break free. Cars assembled in Shanghai account for 52% of the total number of cars Tesla delivered to customers around the world in 2025. China is Tesla's second-largest market in the world after the US. Gao Shen, an independent analyst based in Shanghai, said, “Given the role of the Shanghai factory and China's strong electric vehicle supply chain, any potential plan to divest the Chinese business is economically unviable for Tesla.” “Today, Tesla is still a global leader in electric vehicles, although its Chinese rivals are growing rapidly in domestic and international markets,” he said. Tesla Vice President Tao Lin said last year that Tesla's Shanghai Gigafactory has more than 400 Chinese suppliers, and more than 60 of them also supply parts to Tesla's overseas factories. She also said that more than 95% of the parts for the Model 3 and Model Y models produced by Tesla in Shanghai are supplied by Chinese suppliers.

According to a report on the Hong Kong “South China Morning Post” website on July 31, Elon Musk denied a media report claiming that Tesla is considering selling its Chinese business. Musk, CEO of Tesla and Space Exploration Technologies, wrote on the X platform on July 31: “This has never been discussed. Ridiculously fake news.” Before the richest man in the world made these remarks, the US “Wall Street Journal” reported that Tesla is considering divesting its Chinese business from its global business before it is expected to merge with space exploration technology companies, which may eventually lead to the sale or closure of its gigafactory in Shanghai. The Wall Street Journal quoted an unnamed source as saying that Musk hopes to restructure Tesla as accurately as a “laser” to resolve the potential conflict of interest issues arising from space exploration technology companies as a major US defense contractor in the face of tense US-China relations. Analysts believe Tesla's assembly plant in Shanghai will not be easy to break free. Cars assembled in Shanghai account for 52% of the total number of cars Tesla delivered to customers around the world in 2025. China is Tesla's second-largest market in the world after the US. Gao Shen, an independent analyst based in Shanghai, said, “Given the role of the Shanghai factory and China's strong electric vehicle supply chain, any potential plan to divest the Chinese business is economically unviable for Tesla.” “Today, Tesla is still a global leader in electric vehicles, although its Chinese rivals are growing rapidly in domestic and international markets,” he said. Tesla Vice President Tao Lin said last year that Tesla's Shanghai Gigafactory has more than 400 Chinese suppliers, and more than 60 of them also supply parts to Tesla's overseas factories. She also said that more than 95% of the parts for the Model 3 and Model Y models produced by Tesla in Shanghai are supplied by Chinese suppliers.