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Tesla Denies Plans to Sell China Business Amid Speculation of SpaceX Merger

Tesla rejects rumors of selling its Chinese operations as uncertainty grows over its position in the world's largest car market.

Jul 31, 2026, 7:22 AM Nikkei Asia

Teslatopic Tesla Gigafactoryperson Elon Muskperson Chinageography Sell China Business Amid Speculationtopic Tesla Denies Plansperson HONG KONGtopic Mergertopic Nikkei Asiaorganization Reutersorganization Shanghaitopic Tesla CEOtopic

Famous photograph of Serbian-American inventor Nikola Tesla in his laboratory in Colorado Springs December 1899, supposedly sitting reading next to his giant " magnifying transmitter " high voltage generator while the machine produced huge bolts of electricity. The photo was a promotional stunt by photographer Dickenson V. Alley; a double exposure. First the machine's huge sparks were photographed in the darkened room, then the photographic plate was exposed again with the machine off and Tesla sitting in the chair. In his Colorado Springs Notes Tesla admitted that the photo is false: " Of course, the discharge was not playing when the experimenter was photographed, as might be imagined! " Tesla's biographers Carl Willis and Mark Seifer confirm this. During 1899-1900 Tesla built this laboratory and researched wireless transmission of electric power there. The Magnifying Transmitter, one of the largest Tesla coils ever built, with input power of 300 kW could produce potentials of around 12 million volts at a frequency of about 150 kHz, creating 130 ft. (41 m) "lightning bolts". The arcs in the image are 22 feet long. These long arcs were not a feature of the normal operation of the coil because they wasted energy; for these photos Tesla forced the machine to produce arcs by switching the power rapidly on and off. The photo was part of a publicity spread taken by photographer Dickinson Alley in December 1899 to accompany Tesla's magazine article Nikola Tesla, "The Problem of Increasing Human Energy", Century Magazine , The Century Co., New York, June 1900, fig. 8 ; a version without Tesla appears in the article. Wellcome Images Keywords: Electrical energy; Electric; Power; Electricity; Energy; Volt; Power (Psychology); Static; Voltage; Laboratories; Nikola Tesla · Photo by Photographer: Dickenson V. Alley Restored by Lošmi · Public domain · Source: wikimedia

On Friday, July 31st, 2026, U.S. automaker Tesla denied reports that it is considering the sale of its Chinese business. This denial comes amid increasing speculation about a potential merger between Tesla and SpaceX, raising questions about Tesla's future in China, the world's largest automotive market.

Tesla's Gigafactory in Shanghai remains operational, with employees actively working as observed during a government-organized media visit on April 14th, 2026. Elon Musk, Tesla's CEO, has dismissed the sale rumors as "absurdly fake news," emphasizing the company's commitment to navigating geopolitical challenges.

The company's rejection of the sale rumors highlights Tesla's ongoing focus on maintaining its presence in Asia despite the complex business environment.

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Nikkei Asia
Reuters coverage of Tesla Gigafactory in Shanghai

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