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Elon Musk calls Tesla China withdrawal claims 'absurdly false'
Tesla CEO Elon Musk vehemently denied the Wall Street Journal report that the company could withdraw from the Chinese market. Musk stated that such a scenario was never discussed within the company.
Tesla's top executive Elon Musk flatly denied reports that the company could restructure its operations in China. Musk described the Wall Street Journal report as 'absurdly false news' and said, "This scenario was never discussed."
According to Newsweek, Musk emphasized that the idea of Tesla exiting China was never raised within the company. China is Tesla's second-largest market after the US and a key hub in the company's global production network.
The company's latest quarterly data reveals just how vital the Chinese market is for Tesla. In the April-June 2026 period, Tesla generated approximately $4.7 billion in revenue from China. This figure accounts for 17 percent of the company's total quarterly revenue. Last year, more than half of Tesla's global vehicle deliveries took place in China.
Tesla's presence in China is not limited to sales. The Shanghai Gigafactory, which began operations at the end of 2019, became the country's first wholly foreign-owned automobile factory. This facility enabled Tesla to integrate into China's advanced electric vehicle supply chain, reduce production costs, and avoid import tariffs.
The Shanghai plant has also become Tesla's main export hub. Vehicles produced there are shipped to Asian and European markets. Tesla continues to invest in China in the energy storage sector as well. The company has invested approximately $200 million to build a Megafactory in Shanghai for the production of Megapack batteries.
Experts note that Tesla's massive investment volume, revenue size, and industrial infrastructure in China make it impossible for the company to withdraw from this market in the short term, despite geopolitical tensions between Beijing and Washington and intense competition from local rivals. The Chinese market appears to be an integral part of Tesla's global strategy.
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