A Model Y vehicle on display at a Tesla flagship store on Jan. 4, 2021 in Shanghai, China.
Gao Yuwen | Visual China Group | Getty Images
Citing concerns about national security, China is restricting the use of Tesla’s electric vehicles by some state and military personnel, according to a Wall Street Journal report on Friday. A separate report from Bloomberg said the cars were banned in certain areas.
Shares of Tesla fell more than 2.6% Friday morning.
It comes after the country conducted a safety review of the vehicles, where they reportedly found that Tesla’s sensors could record images of their surrounding locations. 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. According to the report, it can also track more personal information such as a cell phone’s contact list when connected to the car.
According to the report, China is ultimately concerned that the information could be returned to the United States.
Tesla did not immediately respond to a request for comment.
Tesla’s Chinese market is playing an increasing role in the company’s deliveries and manufacturing. The company’s sales in China more than doubled last year to $ 6.66 billion, or 21% of its $ 31.54 billion total. In 2019, Tesla’s sales in China were $ 2.98 billion, just 12% of its $ 24.58 billion total.
Read the full Wall Street Journal report here.