10:02 AM EST, 01/15/2025 (MT Newswires) -- (Updates with comment from TikTok in the sixth paragraph and latest stock movement in the eighth paragraph.)

Tesla (TSLA) Chief Executive Elon Musk's acquisition of the US operations of TikTok is being evaluated as a potential option by Chinese officials if the company is unable to defend itself from a ban in the country, Bloomberg News reported Tuesday citing people familiar with the matter.

Even though the officials in Beijing want TikTok to remain under the ownership of Chinese parent ByteDance and the ban is being contested with an appeal to the US Supreme Court, the justices signaled they are likely to uphold the law as security concerns take priority over free speech, the sources told Bloomberg.

Musk's X could potentially take control of TikTok US and run the businesses together, according to the people, who added that the officials have yet to reach a firm consensus.

It is unclear whether Musk, TikTok and ByteDance have held any talks about the terms of any possible deal, the report said.

TikTok's US operations could be valued at about $40 billion to $50 billion, Bloomberg Intelligence analysts Mandeep Singh and Damian Reimertz estimated last year.

"We cannot be expected to comment on pure fiction," a TikTok representative said in response to MT Newswires request for comment.

Tesla and ByteDance did not immediately respond to MT Newswires' requests for comment on the matter.

Shares of Tesla were up 5.3% in recent Wednesday trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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