Tesla Banned From Parking (Again) At Chinese Government Offices

JAKARTA - Staff at a Chinese government office have been notified of a ban on parking their Tesla electric cars in the office yard.

The 'classic' security issue is related to cameras installed in Tesla cars, according to two sources with knowledge of the matter.

The people said officials from at least two government agencies in Beijing and Shanghai had been instructed orally by supervisors, not to park their Tesla electric cars at work.

"It is unclear how many cars were affected," the people, who declined to be identified because of the sensitivity of the issue, told Reuters Friday, May 21.

It is not yet clear whether all government office complexes in Beijing have imposed such restrictions, or whether such actions constitute official government orders or measures adopted by agency officials.

However, it is not yet clear whether restrictions will also be imposed on state agencies nationwide.

Both sources said the ban was related to car sensors and cameras that could help with this driving feature, while only applying to Tesla alert products.

This is not the first ban. In March, Tesla vehicles were barred from entering several military complexes in China, sources told Reuters, citing safety concerns over vehicle cameras.

Neither the State Council Information Office (SCIO), which handles media requests for the Chinese government, nor Chinese Tesla officials, immediately responded to requests for comment.

The restrictions provide a new indication of China's continued vigilance against U.S. electric car manufacturers amid tensions with Washington.

Facing more scrutiny after safety and customer service complaints were made public in China, Tesla stepped up its engagement with Chinese regulators and strengthened its government relations team, industry sources said earlier.

China, the world's largest car market, is the electric carmaker's second-largest market, accounting for about 30 percent of its sales. Tesla now makes electric Model 3 sedans and Model Y sports vehicles at its Shanghai plant.

Unknown, Tesla has equipped its production vehicles with cameras and sensors that capture images around the car. Control over how the images are used and where they are sent and stored is a rapidly emerging challenge for industry and regulators around the world.

Tesla cars have multiple external cameras to help drivers park, change lanes, and other features. Chief Executive Elon Musk often comments on the value of data taken by Tesla vehicles that can be used to develop autonomous driving.

Days after a ban on Tesla cars in March at a military compound, Musk appeared via video at China's high-level forum, saying if Tesla used the car to spy in China or elsewhere, it would be shut down.

"There is a very strong push for us to keep any information very secret," Musk said at a forum titled 'China Development Forum' held online.

"If Tesla uses cars to spy on China or anywhere else, we will be shut down," Musk added firmly.

Most recently, Tesla said it would open a data center in China and was developing a data platform for car owners in China. The planned construction of the data center was confirmed by Tesla Global Vice President Grace Tao Lin, as cited by the 21st Century Business Herald.

Tao sought to appease China by saying that data collected from Tesla electric cars in China was stored in the country. He said this after attending a roundtable forum held by the National Development and Reform Commission, China's economic planner.

"Information gathering by all smart cars in the future can follow standard configurations. In this process, it is necessary to work with regulatory authorities at all levels, to formulate a comprehensive plan so that consumers can enjoy comfort and security," Tao told the Global Times on Wednesday, April 14.