SINGAPORE – The Chinese government is restricting the use of Tesla Inc.’s
TSLA -6.93%
vehicles by personnel from military, state-owned companies in sensitive industries and key agencies, citing concerns that the U.S. electric vehicle manufacturer’s cars could be a source of national security leaks, according to people familiar with the effort.
The move follows a government security investigation of Tesla’s vehicles, which Chinese officials said the cars’ sensors could record visual images of surrounding locations, the people said. The Chinese government also said Tesla – through the vehicles – could obtain various data, such as when, how and where the cars are used, as well as personal information of the drivers and the contact list of mobile phones that are synchronized with the cars. people said. The government is concerned that some data could be returned to the US, the people said.
The government has notified some of its agencies to ask their employees to stop driving Tesla cars to work, they said. Some people said Tesla cars were also prohibited from driving to residential complexes for families of staff working in sensitive industries and government agencies. Their agencies told them that one of the government’s concerns is that Tesla vehicles could be constantly in recording mode, using cameras and other sensors to capture various details, including short videos.
The China State Council Information Office did not immediately respond to a request for comment.
Tesla declined to comment on the government’s decision. It referred The Wall Street Journal to a comment it had previously made to the Chinese media in response to previous concerns about data security. “Tesla’s privacy policy is consistent with Chinese laws and regulations. Tesla is committed to protecting user privacy, ”he said. It also said in-car cameras are not enabled for all Tesla vehicles in China.
The Chinese market, where Chief Executive Elon Musk is widely celebrated, is increasingly important to Tesla. Deliveries to the country last year enabled the company to deliver approximately 500,000 vehicles worldwide, a record. Tesla, based in Palo Alto, California, which broke new ground at its Shanghai plant in January 2019, currently manufactures the Model 3 sedan and Model Y compact SUV at the factory.
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Write to Keith Zhai at [email protected]
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