China selectively bans Tesla vehicles from government compounds

Two sources familiar with the matter at hand have stated, the Chinese government has told its employees not to park cars made by Tesla Inc inside select government compounds due to cameras being installed on the vehicle.

So far, it is not clear how many Tesla cars will be affected by this informal directive, said sources declining to be identified due to the sensitivity of the matter.

It is not clear whether Tesla cars will be banned from the parking lots of all government offices in Beijing; there is also a lack of clarity whether the measure was a formal government injunction or a step adopted by agency officials,

While all smart vehicles have sensors and cameras that assist driving feature, sources have said, the restriction currently applies only to Tesla cars. Earlier this year in March, Tesla vehicles were banned from entering Chinese military complexes citing security concerns over vehicle cameras.

Tesla China did not immediately respond to requests for comments.

The State Council Information Office (SCIO), which handles media requests for the Chinese government, did not immediately respond to requests for comments.

The lack of clarity in communication and the biased approach towards Tesla is typical in terms of headwinds foreign companies face in China, and is indicative of China’s continued tensions with Washington.

According to industry sources, Tesla, faces heightened scrutiny after highly publicized customer service complaints in China, is taking the development head-on and is boosting its engagement with mainland regulators and beefing up its government relations team.

Apart from producing the Model 3 sedan, Tesla also makes the Model Y sport-utility vehicles in its Shanghai plant.

All advanced electric vehicles have equipped their vehicles with sensors and cameras that can capture images of the car’s surroundings; features such as these is gives the cars their intrinsic value and make them smart.

Tesla’s CEO Elon Musk has commented frequently on the value of the data that Tesla vehicles capture which can be used to develop autonomous driving.

Tesla has committed to opening a data centre in China and is developing a data platform for car owners in China.

Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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