Elon Musk said his business would be shut down if his cars were used for espionage.
The CEO of Tesla responded to news that China’s military has banned Tesla cars from its facilities.
Musk said in a virtual discussion with a Chinese forum: ‘There is a very strong incentive for us to be very confidential with any information.
“If Tesla used cars to spy in China or anywhere, we would be shut down.”
According to a Reuters report, the Chinese military has concerned security over cameras installed on Tesla’s vehicles.
The cameras are used to help drivers with parking and self-driving, while some models also have cameras in the rearview mirror for driver safety.
Mr. Musk spoke earlier about the value of the data that Tesla vehicles can record, and said it could be used to develop autonomous driving functions.
According to reports, Chinese officials found that the cars were able to capture visual images of their surroundings.
The military responded by asking Tesla owners to park their cars outside military property.
It came as diplomats from the US and China were criticized each other during a two-day meeting in Alaska, the first personal talks between the two countries since Joe Biden joined the US in January.
China is the world’s largest car market and especially a critical market for electric vehicles.
Tesla sold about 30% of its vehicles in China last year, but it is heavily confronted by local competitors.