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All Tesla vehicles are now banned from Chinese military bases and other sensitive military complexes.
The Chinese military has banned Tesla cars from entering its complexes, citing security concerns over cameras installed on the vehicles, according to Reuters.com.
The move is the latest sign of China’s growing scrutiny of the U.S. electric carmaker amid tensions with Washington.
Tesla won strong backing from Shanghai when it built its first overseas factory there in 2019. Tesla’s sleek Model 3 sedans were the best-selling electric vehicle in the country before being overtaken by a much cheaper micro EV.
The directive advises owners to park Teslas outside military property, as sources said, declining to be named due to the sensitivity of the issue.
Pavel Molchanov, an analyst at Raymond James & Associates, said the latest restrictions on Tesla were a close parallel to the U.S. government’s hostility toward Huawei on concerns Beijing could have access to U.S. telecoms infrastructure.
The new Chinese restriction could certainly be something of an inconvenience, considering Tesla sold 147,445 cars in China last year, or 30% of its total deliveries, though competition is growing from domestic rivals such as Nio and Geely.