Tesla China Denies Report That Company Is Considering Spinning Off China Operations
Tesla China has denied a report that the electric-car maker is considering spinning off its China operations to pave the way for a potential future merger with SpaceX. The report emerged on July 31. Tesla China told a reporter from The Paper that the claim was “false.” China, centered on Tesla’s Shanghai Gigafactory, is both the company’s largest vehicle-production base and export hub worldwide, as well as a key consumer market. According to official data, the Shanghai Gigafactory delivers more than half of Tesla’s global orders. Tesla delivered more than 830,000 vehicles worldwide in the first half of 2026. The Shanghai plant delivered nearly 468,000 vehicles during that period, up 28.4% from a year earlier and the highest first-half production total in nearly three years. Since delivering its first China-made Model 3 vehicles in December 2019, the Shanghai Gigafactory has produced more than 4.5 million electric vehicles in six and a half years. That represents more than 45% of Tesla’s total global production and makes the plant Tesla’s largest export center worldwide. The Model 3 and Model Y purchased by Chinese consumers are produced on the same lines as vehicles exported to markets in the Asia-Pacific region and Europe. The six-seat luxury SUV Model Y L, designed and developed under China’s leadership and manufactured there, is being introduced in multiple global markets. As of the end of June 2026, the Model Y’s cumulative global sales had exceeded 5 million vehicles, including more than 2 million in China. Cumulative global sales of the Model 3 had exceeded 3 million vehicles, including more than 1 million in China. On July 30, Tesla announced that its 10 millionth battery-electric vehicle had officially rolled off the production line at its Fremont factory, making Tesla the first company in the world to cumulatively produce 10 million battery-electric vehicles.
The report emerged on July 31. Tesla China told a reporter from The Paper that the claim was “false.”
China, centered on Tesla’s Shanghai Gigafactory, is both the company’s largest vehicle-production base and export hub worldwide, as well as a key consumer market.
According to official data, the Shanghai Gigafactory delivers more than half of Tesla’s global orders. Tesla delivered more than 830,000 vehicles worldwide in the first half of 2026. The Shanghai plant delivered nearly 468,000 vehicles during that period, up 28.4% from a year earlier and the highest first-half production total in nearly three years.
Since delivering its first China-made Model 3 vehicles in December 2019, the Shanghai Gigafactory has produced more than 4.5 million electric vehicles in six and a half years. That represents more than 45% of Tesla’s total global production and makes the plant Tesla’s largest export center worldwide.
The Model 3 and Model Y purchased by Chinese consumers are produced on the same lines as vehicles exported to markets in the Asia-Pacific region and Europe. The six-seat luxury SUV Model Y L, designed and developed under China’s leadership and manufactured there, is being introduced in multiple global markets.
As of the end of June 2026, the Model Y’s cumulative global sales had exceeded 5 million vehicles, including more than 2 million in China. Cumulative global sales of the Model 3 had exceeded 3 million vehicles, including more than 1 million in China.
On July 30, Tesla announced that its 10 millionth battery-electric vehicle had officially rolled off the production line at its Fremont factory, making Tesla the first company in the world to cumulatively produce 10 million battery-electric vehicles.