Tesla is banned from entering Chinese military complexes
Reuters reported that the Chinese military has prevented Tesla cars from entering its compounds, citing security concerns about the cameras installed on the vehicles.
The move marks the latest sign of China's growing scrutiny over the US electric car maker, amid tensions with Washington.
Analysts said: This is similar to the measures taken by Washington against the Chinese telecom company Huawei under the pretext of national security.
The Chinese military restrictions against Tesla emerged when senior Chinese and US officials held a controversial meeting in Alaska, the first interaction of its kind since US President (Joe Biden) took office.
The US electric car manufacturer got strong support from Shanghai when it built its first overseas plant there in 2019.
And the Model 3 was the country's best-selling electric vehicle before it was overtaken by a much cheaper electric minivan.
The directive advises owners to park Tesla cars outside military properties, and residents were notified this week.
Separately, the Wall Street Journal reported that the Chinese government has been restricting the use of Tesla cars by private individuals in military and state-owned companies in sensitive industries and major agencies.
It was not immediately clear whether the measure applied to all of these facilities, and the move came after a government security review of Tesla cars, the report said.
In his first comments on news of the Chinese army banning Tesla from its facilities, (Elon Musk), Tesla CEO, said today, Saturday: that his company will be closed if its cars are used for espionage.
"There is a very strong incentive for us to be very secretive with any information, and if Tesla used cars to spy in China or anywhere, we would close our doors," Musk said at the China Development Forum during a hypothetical discussion.
In his remarks to the China Development Forum, Musk urged increasing mutual trust between the two largest economies in the world.
In China, Tesla, the world's largest auto market and a major battlefield for electric cars, sold 147,445 cars last year, 30 percent of its total global sales.
However, it faces more competition this year from local competitors from Nio to Geely.