A Model Y vehicle on display at a flagship Tesla store on January 4, 2021 in Shanghai, China.
Gao Yuwen | Visual China Group | Getty Images
Citing national security concerns, China restricts the use of Tesla electric vehicles by state and military personnel, according to a Wall Street Journal report released Friday. A separate report, from Bloomberg, said cars were banned in certain areas.
Shares of Tesla fell more than 2% Friday morning.
It comes after the country conducted a vehicle security check, where reports found that Tesla sensors could record images of their surrounding locations. The Wall Street Journal, which cites people familiar with the issue, added that Tesla could get key data, such as when and where cars are used. According to the report, it could also track more personal information, such as a cell phone’s contact list if it’s connected to the car.
According to the report, China is concerned about the information that could be sent to the United States.
Tesla did not immediately respond to a request for comment.
Tesla’s Chinese market has played a growing role in the company’s deliveries and production. The company’s sales in China doubled more than last year, to $ 6.666 billion, or 21% of the total of $ 31.54 million. In 2019, Tesla’s sales in China reached $ 2.988 billion, just 12% of the total of $ 24.58 million.
Read the full Wall Street Journal report here.