New Delhi, July 31 -- Elon Musk has dismissed as "fake news" a media report claiming that executives at electric vehicle maker Tesla had been asked to prepare for a separation of the company's China operations ahead of a potential merger with his space exploration company, SpaceX.

According to a Wall Street Journal report published on Thursday, Tesla advisers have explored several options for its China business, including a spin-off, sale, or even a shutdown. The report noted that no final decision had been made and that any restructuring plans could still change.

A potential merger between Tesla and SpaceX would likely face significant geopolitical and regulatory challenges, particularly in China. While SpaceX is a major U.S. defence c...