According to two people who have seen notices of the instruction, the Chinese military has banned Tesla automobiles from entering its installations, citing security concerns over cameras fitted on the vehicles.
In the midst of tensions with the United States, China is increasing its inspection of the American electric carmaker.
Analysts compared it to Washington’s national security restrictions against Huawei, a Chinese communications firm.
Chinese military restrictions on Tesla arose at a tense meeting between senior Chinese and US officials in Alaska, the first such meeting since US President Joe Biden took office.
“I’m sure the timing of the announcement was tied to the planned pyrotechnics in Anchorage,” said Ian Bremmer, president of the Eurasia Group consulting firm.
Tesla’s stock rose 0.3 percent after plunging as much as 4.4 percent throughout the trading session.
When the electric car company constructed its first overseas facility in Shanghai in 2019, it received a lot of support.
Before being surpassed by a much cheaper mini EV, Tesla’s elegant Model 3 cars were the best-selling electric vehicles in the country.
The command instructs Tesla owners to park their vehicles outside military land, and homeowners were alerted this week, according to the two sources, who declined to be identified due to the sensitivity of the situation.
Pavel Molchanov statement
According to Pavel Molchanov, an analyst at Raymond James & Associates, the recent restrictions on Tesla are similar to the US government’s anti-Huawei stance, which stems from concerns that Beijing could get access to US communications infrastructure.
“Even if such anxiety is overstated, it might cause disruption for the immediately affected business,” he warned.
Separately, the Wall Street Journal claimed that the Chinese government was restricted Tesla car use by military personnel, state-owned firms in sensitive industries, and vital government offices.
It was unclear whether the regulation extended to all such institutions right now.
The decision was made following a federal security evaluation of Tesla’s vehicles, according to the newspaper, which cited people involved with the process.
Last year, Tesla sold 147,445 cars in China, accounting for 30% of its total sales, despite increasing rivalry from domestic rivals such as Nio Inc and Geely.
Requests for comment from China’s State Council Information Office and Tesla were not immediately returned.
China’s defense ministry could not be reached for comment right away.
The California-based firm hasn’t shied away from the truth, with Chief Executive Officer Elon Musk tweeting in April 2019 that the internal camera is there “for when we start competing with Uber/Lyft and customers enable their car to earn money for them as part of the Tesla shared autonomy fleet.”
Since then, Tesla has begun to watch what it refers to as FSD (full self-driving) beta testers, or Tesla owners who have volunteered to try out the company’s driver-assist capabilities, utilizing the cars’ internal cameras.
Musk announced earlier this month that Tesla’s FSD beta trial had been increased to about 2,000 owners, but that the company has also “revoked beta where drivers did not pay appropriate attention.”
Musk announced earlier this month that the FSD beta trial had been expanded to about 2,000 owners, but that the business has also “revoked beta where drivers did not pay sufficient attention to the road.”
The next important release of FSD beta, according to Musk, will be in April.
Concerns over the initiative contributed to the military’s decision to prohibit it, according to one source.
According to the Tesla spokesman, none of the in-car cameras in Teslas sold in China are turned on or part of the FSD beta experiment.
According to the source, Tesla’s privacy rules are compliant with Chinese national and municipal legislation.
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