Tesla Reassures China Of Data Protection As Military Imposes Further Restrictions: Report

Tesla Inc TSLA on Tuesday reassured China that data collected from its electric vehicles in the country stays there, reiterating its earlier stand over user privacy protection in the country, according to Reuters.

What Happened: The electric vehicle maker’s Vice President Tao Lin told reporters in Beijing that Tesla’s data is well protected and is stored in China.

The Chinese government had last month restricted Tesla vehicle access to military, state-owned enterprises in sensitive industries, and critical agencies over national security concerns. According to Reuters, the Chinese military has banned Tesla cars from entering any of its complexes at all.

Tesla vehicles had eight surround cameras, 12 ultrasonic sensors, and radar for their autopilot system. The Chinese-bestselling Model 3 and Model Y vehicles had a camera installed above the rear-view mirror.

Suspicions were raised over the car sensors’ ability to record visual images of surrounding locations and Tesla’s indiscriminate data collection over car usage, including drivers’ personal information and mobile phones’ contact list synced to the cars.

Why It Matters: Tesla is building electric Model 3 sedans and Model Y sport-utility vehicles at its Shanghai gigafactory. China is a crucial market for Tesla — being the largest automobile market in the world that has also made significant electric vehicle push.

Tesla delivered 35,478 vehicles in China in March alone, a 207% year-over-year rise, as per data from China Passenger Car Association.

Price Action: Tesla shares closed 8.60% higher at $762.32 on Tuesday.

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