Elon Musk quickly shut down rumors about Tesla pulling out of China, calling a recent Wall Street Journal report "absurdly fake news" on X. The report suggested Tesla might sell, spin off, or close its China operations as part of a shakeup linked to SpaceX and rising US-China tensions.
Shanghai produces over half of Tesla’s global deliveries and remains fully owned by Musk, making any exit complicated. Still, Tesla faces tough competition from local rivals like BYD and Xiaomi, which has driven down its sales.
US tech companies are under increasing scrutiny regarding their presence in China. Nvidia recently sent its CEO Jensen Huang to Washington for talks with lawmakers about export controls restricting advanced chips from reaching Chinese buyers. This move followed accusations that a Chinese AI startup used Nvidia’s controlled chips through third countries to train its models.
Despite this backdrop, Musk’s dismissal of exit rumors contrasts with Nvidia’s ongoing challenges but signals Tesla's intention to stay put. Tensions over technology exports and defense contracts continue to cast a shadow over American firms operating in China.
This material is for informational purposes only and does not constitute financial advice.
