A Model Y vehicle displayed at a Tesla flagship store on Jan. 4, 2021 in Shanghai, China.
Gao Yuwen | Visual China Group | Getty Images
Citing national security concerns, China is restricting the use of Tesla‘s electric vehicles by some state and military personnel, according to a Wall Street Journal report from Friday. A separate report, from Bloomberg, said the cars were banned in certain areas.
Shares of Tesla were down more than 2.6% Friday morning.
It comes after the country led a security review of the vehicles, where they reportedly found that Tesla’s sensors could record images of their surrounding locations. The Wall Street Journal, citing people familiar with the matter, added that Tesla could obtain key data, like when and where the cars are being used. It could also track more personal information, like a cell phone’s contact list if it’s connected to the car, according to the report.
China is ultimately concerned the information could be sent back to the United States, according to the report.
Tesla did not immediately respond to a request for comment.
Tesla’s China market has had an increasing role in the company’s deliveries and production. The company’s sales in China more than doubled last year to $6.66 billion, or 21% of the $31.54 billion total. In 2019, Tesla’s China sales reached $2.98 billion, just 12% of the $24.58 billion total.