Elon Musk Denies Tesla Cars are Being Used for Spying in China

Elon Musk, the Chief Executive Officer (CEO) of electric carmaker Tesla, has downplayed espionage concerns from China, his first comments on news that China’s military has banned Tesla cars from its facilities saying if its vehicles were used for spying, the company would be shut down.

The entrepreneur was speaking at the China Development Forum, hours after a screenshot of an order issued at a military accommodation complex banning Tesla vehicles went viral on Chinese social media. The notice said that due to the cameras and ultrasonic sensors fitted inside Tesla cars that could expose the location of targets, the vehicles would be banned from entering military facilities to prevent a security threat.

“There’s a very strong incentive for us to be very confidential with any information,” Musk told a prominent Chinese forum during a virtual discussion on Saturday. “If Tesla used cars to spy in China or anywhere, we will get shut down.”

Those restrictions surfaced as the top Chinese and US diplomats were holding a contentious meeting in Alaska, the first such in-person interaction since U.S. President Joe Biden took office in January. Musk urged greater mutual trust between the world’s two biggest economies, in his remarks to the China Development Forum, a high-level business gathering is hosted by a foundation under the State Council.

He was holding a discussion panel with Xue Qikun, a Chinese quantum physicist who heads the Southern University of Science and Technology. In China, the world’s biggest car market and a key battleground for electric vehicles (EVs), Tesla sold 147,445 vehicles last year, 30% of its global total. However, it is facing more competition this year from domestic rivals from Nio Inc to Geely.

Musk has made several high-profile appearances in China, where Tesla makes as well as sells EVs. In 2019, he discussed Mars and artificial intelligence with Alibaba’s outspoken founder Jack Ma. At a delivery event last year for China-made Model 3 sedans, Musk danced enthusiastically on stage, stripping off his jacket in what became a social media storm.