SINGAPORE – The government of China is restricting the use of Tesla Inc.’s
TSLA -6.93%
vehicles by military personnel, state-owned companies in sensitive sectors and key agencies, citing concerns that cars by the American electric vehicle manufacturer could be a source of national security leaks, according to people familiar with the effort.
The move follows a government security review of Tesla vehicles, which Chinese officials said they discovered that car sensors could record visual images of nearby locations, people said. In addition, the Chinese government said that Tesla – through vehicles – could obtain various data, such as when, how and where the cars are being used, as well as personal information from drivers and the contact list of cell phones synchronized with the cars , people said. The government is concerned that some data may be sent back to the United States, people said.
The government has informed some of its agencies to ask their employees to stop driving Tesla cars to work, they said. Some of the people said that Tesla cars were also banned from entering residential condominiums for families of employees who work in sensitive sectors and state agencies. They have been told by their agencies that one of the government’s concerns is that Tesla vehicles may be constantly in recording mode, using cameras and other sensors to record various details, including short videos.
The Information Office of the State Council of China did not immediately respond to a request for comment.
Tesla declined to comment on the government’s action. He referred to the Wall Street Journal in a comment previously made to the Chinese media in response to past data security concerns. “Tesla’s privacy protection policy is in compliance with Chinese laws and regulations. Tesla attaches great importance to protecting users’ privacy, ”he said. He also said that the car’s cameras are not connected to all Tesla vehicles in China.
The Chinese market, where Chief Executive Elon Musk has been widely celebrated, has become increasingly important for Tesla. Deliveries to the country last year helped the company achieve about 500,000 vehicle deliveries worldwide, a record. Tesla, based in Palo Alto, California, which opened its factory in Shanghai in January 2019, currently manufactures the Model 3 sedan and the compact Model Y sport utility vehicle at the factory.
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Write to Keith Zhai at [email protected]
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