Tesla’s chief Elon Musk on Friday denied the reports of espionage
concerns from China saying that his company would shut down if the cars were
used for spying purposes. This marks his first comment on the incidents since
news of Chinese military banning Tesla cars from entering its military complexes, citing
security concerns over installed camera’s on the vehicles broke out, Reuters
reported.

According to Reuters sources, officials asked Tesla cars to be parked outside in response to the concerns that cameras on the them could be used for spying.

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While talking to a prominent Chinese panel during a high-level virtual business discussion, Musk said, “There’s a very strong incentive for us to be very confidential with any information,” adding that Tesla, which is one of the global dominators in the auto industry, would shut down if its vehicles spied in China or anywhere else.

He also urged for greater mutual trust between US and China in terms of business in his remarks to the China Development Forum.

The reports of Chinese restrictions on Tesla started doing rounds as the top Chinese and US diplomats were holding a contentious meeting in Alaska, the first time after US President Joe Biden took office in January.

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The talks were reported to be a tough dialogue between the two nations, who do not see eye to eye on several issues such as human rights violation and growing assertiveness of China in the Indio-Pacific region.

On the business front, Tesla sold 147,445 vehicles last year in China, which is the biggest global car market and a key battleground for electric vehicles. However, the company is facing stiff competition this year from domestic rivals like Nio Inc to Geely.