A new report from the Wall Street Journal claims Tesla could separate its U.S. and Chinese business entities.
The report claims a potential SpaceX merger is the reason why executives have been ordered to prepare for a split.
Musk chimed in, calling the rumors "absurdly fake news."
China is the world's largest car market by volume. Not only that, it's a massive playing field where EVs—especially ones built by trendy brands stuffed with the latest self-driving tech—take center stage. It's also the center of a geopolitical firestorm as automakers spill out onto the global market and disrupt sales dominated by Western brands. And it's a profit center for Tesla's car business.
So when The Wall Street Journal reported that Tesla executives were exploring a way to separate Tesla's Chinese operations, it raised a few alarms—enough to get CEO Elon Musk to comment on the rumors.
