JAKARTA - Tesla is facing charges of espionage, spying on China from the Beijing military. In the midst of the accusations, Tesla actually built a data center in China.

The Chinese military has accused Tesla of spying through sensors and camera features that replace the rearview mirrors in Tesla's cars. Tesla says the data center is built to store information it collects from its users.

As of March, Tesla has restricted the use of Tesla cars. However, the restrictions are still in the scope of the military and employees of state-owned companies.

Tesla himself at that time immediately denied China's accusations. "We have set up a data center in China to store data locally and we will add more," Tesla said.

In a statement following the construction of the data center, Tesla also promised to keep the data safe for its users in China. Tesla also previously promised to comply with Chinese government regulations. However, Tesla did not specify where the exact location of the data center would be.

Allegations of espionage

The allegations began in March, when the Chinese military banned Tesla cars from entering military areas, including offices and housing.

The Chinese military is concerned that Tesla's cars could be used by the United States (US) as a spying tool. This ban immediately dropped Tesla shares by two percent.

This figure is a blow for Tesla, considering that the company's stock previously managed to increase eightfold in 2020.

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