Tesla Cars Banned From China’s Military Complexes On Security Concerns

The Chinese military has banned Tesla cars from entering its complexes, citing security concerns over cameras installed on the vehicles,

The move is the latest sign of China’s growing scrutiny of the U.S. electric carmaker amid tensions with Washington. Analysts said it resembled Washington’s measures against Chinese telecoms firm Huawei citing national security.

Chinese military restrictions on Tesla surfaced as senior Chinese and U.S. officials held a contentious meeting in Alaska, the first such interaction since U.S. President Joe Biden took office.

Tesla shares ended up 0.3% after falling as much as 4.4% during trade.

The U.S. electric car maker won strong backing from Shanghai when it built its first overseas factory there in 2019. Tesla’s sleek Model 3 sedans were the best-selling electric vehicle in the country before being overtaken by a much cheaper micro EV.

The directive advises owners to park Teslas outside military property, and residents were notified this week, the two sources said, declining to be named due to the sensitivity of the issue.

Musk says Tesla would be shut down if its cars spied in China, elsewhere

Tesla Inc chief executive Elon Musk said on Saturday his company would be shut down if its cars were used to spy, his first comments on news that China’s military has banned Teslas from its facilities.

“There’s a very strong incentive for us to be very confidential with any information,” Musk told a prominent Chinese forum during a virtual discussion. “If Tesla used cars to spy in China or anywhere, we will get shut down.”