A Model Y vehicle was unveiled on January 4, 2021 in Shanghai, China, in a Tesla flagship store.
Gao Yuwen | Visual China Group | Getty Images
Referring to national security, China is restricting the use of Tesla’s electric vehicles by some state and military personnel, according to a report by the Wall Street Journal on Friday. A separate Bloomberg report says the cars were banned in certain areas.
Shares of Tesla fell more than 2.6% on Friday morning.
This comes after the country conducted a safety review of the vehicles, where they allegedly found that Tesla’s sensors could record images of their surrounding locations. The Wall Street Journal, referring to people familiar with the matter, added that Tesla can obtain important information, such as when and where the cars are used. According to the report, it can also detect more personal information, such as the contact list of a cell phone when it is connected to the car.
China is finally worried that the information could be returned to the United States, according to the report.
Tesla did not immediately respond to a request for comment.
Tesla’s China market has played an increasing role in the delivery and production of the company. The company’s sales in China more than doubled last year to $ 6.66 billion, or 21% of the total of $ 31.54 billion. In 2019, Tesla’s sales in China reached $ 2.98 billion, just 12% of the total of $ 24.58 billion.
Read the full Wall Street Journal report here.