A Model Y vehicle displayed at a Tesla pilot 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 members of state and military personnel, according to a report in the Wall Street Journal on Friday. A separate report from Bloomberg said cars were banned in some areas.
Tesla shares fell more than 2.6% on Friday morning.
It comes after the country conducted a vehicle security review, where they discovered that Tesla sensors could record images of their surrounding locations. The Wall Street Journal, citing people familiar with the issue, added that Tesla could obtain key data, such as when and where cars are used. It could also track more personal information, such as a mobile phone’s contact list if connected to the car, according to the report.
China is finally worried that the information could be sent back to the United States, according to the report.
Tesla did not immediately respond to a request for comment.
Tesla’s Chinese market has played an increasing role in the company’s deliveries and production. The company’s sales in China doubled last year to $ 6.66 billion, or 21% of a total of $ 31.54 billion. In 2019, Tesla sales in China reached $ 2.98 billion, only 12% of the total of $ 24.58 billion.
Read the full Wall Street Journal report here.