SINGAPORE—China’s government is restricting the use of Tesla Inc.’s TSLA -6.93% vehicles by personnel at military, state-owned enterprises in sensitive industries and key agencies, citing concerns that the American electric-vehicle maker’s cars could be a source of national security leaks, according to people familiar with the effort.
The move follows a government security review of Tesla’s vehicles, which Chinese officials said found that the cars’ sensors could record visual images of surrounding locations, the people said. Also, the Chinese government said Tesla—through the vehicles—could obtain various data such as when, how and where the cars are being used, as well as personal information of the drivers and the contact list of mobile phones that are synced to the cars, the people said. The government is concerned that some data could be sent back to the U.S., the people said.
The government has informed some of its agencies to ask their employees to stop driving Tesla cars to work, they said. Some of the people said Tesla cars were also banned from driving into housing compounds for families of personnel working in sensitive industries and state agencies. They were told by their agencies that among the government’s concerns is that Tesla vehicles can be constantly in record mode, using cameras and other sensors to log various details, including short videos.
China’s State Council Information Office didn’t immediately respond to a request for comment.
Tesla declined to comment on the government’s move. It referred The Wall Street Journal to a comment it has previously made to Chinese media in response to previous data security concerns. “Tesla’s privacy protection policy complies with Chinese laws and regulations. Tesla attaches great importance to the protection of users’ privacy,” it said. It also said in-car cameras aren’t turned on for all Tesla vehicles in China.
The China market, where Chief Executive Elon Musk has been widely feted, has become increasingly important for Tesla. Deliveries in the country last year helped the company achieve roughly 500,000 vehicle deliveries globally, a record. Palo Alto, Calif.-based Tesla, which broke ground on its plant in Shanghai in January 2019, currently manufactures the Model 3 sedan and the Model Y compact sport-utility vehicle at the factory.
Write to Keith Zhai at [email protected]
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