Alleged Tesla Spying Issue Leads To Road Ban in China! Here's Why This is Bad News for the EV Maker

The alleged Tesla spying issue led to a massive road ban in China. Authorities announced this decision because the surveillance problem might affect their residents' privacy.

Alleged Tesla Spying Issue Leads To Road Ban in China! Here's Why This is Bad News for the EV Maker
A car drives past the new Tesla factory built in Shanghai on November 8, 2019. (Photo by HECTOR RETAMAL / AFP) Photo by HECTOR RETAMAL/AFP via Getty Images

As of writing, Tesla's popular electric vehicle units are restricted on some roads in the Asian country. Previously, Elon Musk had already asked China to trust their EVs, just like how they trust TikTok and other social media platforms.

"There's a very strong incentive for us to be very confidential with any information. If Tesla used cars to spy in China or anywhere, we will get shut down," said the billionaire during the recent China Development Forum.

Alleged Tesla Spying Issue Leads To Road Ban in China!

According to Electrek's report, China recently announced that Tesla vehicles are banned from entering Beidaihe, a Chinese resort town.

Alleged Tesla Spying Issue Leads To Road Ban in China! Here's Why This is Bad News for the EV Maker
A Tesla electric-powered sedan stands at a Tesla charging staiton at a highway reststop along the A7 highway on June 11, 2015 near Rieden, Germany. Tesla has introduced a limited network of charging stations along the German highway grid in an effort to raise the viability for consumers to use the cars for longer journeys. Photo by Sean Gallup/Getty Images

The automaker's zero-emission cars can't enter this area for two months because of the alleged spying issue. This restriction is expected to be implemented as early as July 1.

For those who are not familiar with Beidaihe, this beach resort near Beijing commonly hosts the annual summer gathering. Powerful individuals, including politicians, usually participate in this event.

Since this is the case, authorities want to ensure the privacy of these officials once they visit the Beidaihe resort. This is not the first time that China has banned Tesla vehicles from entering other places.

In 2021, the Chinese government also restricted the electric cars were banned from entering the Chinese military's complexes because of potentially sensitive information leaks.

Why This is a Big Issue for Tesla?

CNN Business reported that China is important for Tesla since it is one of its largest markets. Unlike other countries, the billionaire usually complements this Asian country.

Tu Le, a founder of Beijing-based consulting firm Sino Auto Insights, even said that if the spying issue originated in other markets of Tesla, Musk will not "throw a fit."

Since China is a big deal for Tesla, some experts believe that once Elon owns Twitter, he will try to tamp down the online criticism against China just to have a better image in the Asian country.

Meanwhile, the new Tesla Cybetruck prototype was spotted at a Megapack project event.

On the other hand, Tesla's self-driving feature is now being focused on the company's worth depends on it.

For more news updates about Tesla and other giant automakers, always keep your tabs open here at TechTimes.

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Written by: Griffin Davis

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