Elon Musk dismissed rumors that Tesla plans to promote its Gigafactory Shanghai plant, calling the claims faux information on Friday.
Musk’s denial adopted a Wall Road Journal report on a attainable cut up of Tesla’s China enterprise. That report tied the transfer to a attainable merger between Tesla and SpaceX.
What Musk Is Really Denying
The rumor started after an X person steered on to Musk that Tesla was getting ready to dump the plant. Musk’s reply, posted early Friday morning, known as the report absurdly faux information and urged individuals to imagine breaking information is fake till confirmed in any other case.
The Journal’s report didn’t title Gigafactory Shanghai straight. As a substitute, it stated Tesla advisers had weighed a spin-off, a sale, or a closure of the automaker’s Chinese language operations, choices Musk has not addressed past his blanket denial.
Gigafactory Shanghai stays Tesla’s largest plant, with annual capability above 950,000 automobiles, and it traditionally accounts for greater than half of the corporate’s world deliveries.
Gigafactory Shanghai exports automobiles throughout Europe, Canada, and the Asia-Pacific area. Nevertheless, Musk’s denial landed throughout a tough stretch for Tesla inventory, which suffered its worst week since 2022 after combined second-quarter outcomes.
Why the SpaceX Merger Discuss Persists
The China enterprise rumor didn’t emerge in isolation. Wolfe Analysis has already framed a Tesla and SpaceX merger as a core investor thesis, a pairing Musk has by no means firmly dominated out. That view follows SpaceX’s file preliminary public providing, which raised $75 billion in June and valued the rocket firm at $1.75 trillion.
Musk has individually argued that SpaceX might outvalue Earth itself. That declare underscores how central the rocket firm has turn into to his broader ambitions. Ark Make investments’s Cathie Wooden disclosed a $529 million rotation from Tesla into SpaceX shares this month, citing comparable merger logic.
Musk additionally has a observe file of terse denials transferring markets. He used the same two-word denial to knock down one other SpaceX rumor simply weeks earlier. That sample is why commentators like Complete Mars Catalog urged retailers to not delete their posts after a denial. Conserving the unique submit seen, they argued, helps the general public observe precisely what Musk is rejecting.
Tesla’s second-quarter earnings confirmed income climbing to $28.24 billion, whilst margins narrowed to 16.8%. That hole provides monetary stress that would gasoline extra reorganization hypothesis no matter Musk’s denial. For now, his submit stands as the one official phrase from both firm, and traders will doubtless maintain testing that line as merger chatter builds by way of the remainder of 2026.
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