Tesla would be shut down if its cars spied in China elsewhere

Tesla chief executive Elon Musk said on Saturday that his company would be shut down if his cars were used to spy, his first comments on the news that the Chinese military had banned Tesla from its facilities.

“There is a very strong incentive for us to be very confidential with any information,” Musk told a major Chinese forum during a virtual discussion. “If Tesla used cars to spy in China or anywhere, we’ll be stopped.”

Sources told Reuters on Friday that the Chinese military had banned Tesla cars from entering its complexes, citing security concerns about the cameras installed on the vehicles.

These restrictions emerged as top diplomats in China and the United States held a controversial meeting in Alaska, the first such in-person interaction since US President Joe Biden took office in January.

Musk called for greater mutual trust between the world’s two largest economies, in his remarks to the China Development Forum, a high-level business meeting is hosted by a state council foundation.

He held a panel discussion with Xue Qikun, a Chinese quantum physicist who runs the Southern University of Science and Technology.

In China, the world’s largest car market and a key battleground for electric vehicles (EVs), Tesla last year sold 147,445 vehicles, 30% of its global total. However, it faces more competition this year from internal rivals from Nio Inc to Geely.

Musk has made several appearances in China, where Tesla produces and sells electric vehicles. In 2019, he discussed Mars and artificial intelligence with Alibaba’s open founder, Jack Ma.

At a delivery event last year for China-made Model 3 sedans, Musk danced enthusiastically on stage, stripping off his jacket in what became a social media storm.