A model Y vehicle displayed at a Tesla flagship store on January 4, 2021 in Shanghai, China.
Gao Yuwen | Visual China Group | Getty Images
Citing national security concerns, China is restricting the use of Tesla electric vehicles by some state and military personnel, according to a Wall Street Journal report published on Friday. A separate report by Bloomberg said that cars were banned in certain areas.
Tesla’s shares fell more than 2% on Friday morning.
This is after the country led a vehicle safety review, where they allegedly discovered that Tesla sensors could record images of their surroundings. The Wall Street Journal, citing people familiar with the matter, added that Tesla could obtain important data, such as when and where the cars are being used. It can also track more personal information, such as a cell phone’s contact list if connected to the car, according to the report.
Ultimately, China is concerned that the information will be sent back to the United States, according to the report.
Tesla did not immediately respond to a request for comment.
Tesla’s market in China has played an increasingly important role in the company’s deliveries and production. The company’s sales in China more than doubled last year, to $ 6.66 billion, or 21% of the total of $ 31.54 billion. In 2019, Tesla’s sales in China reached $ 2.98 billion, just 12% of the total $ 24.58 billion.
Read the full Wall Street Journal report here.