Venues Across China Are Banning Tesla EVs Over Security Concerns

An increasing number of Chinese government-affiliated locations are imposing access restrictions on Tesla drivers due to security concerns.

Restrictions like this are not entirely new; tensions between the United States and China have previously resulted in Tesla’s prohibition on military places. In the last year, more places have followed suit, including highway operators, cultural centers, government affiliates, local authority agencies, and exposition centers.

Residents living near Shanghai’s Grand Halls conference center told Nikkei Asia that Tesla vehicles are not permitted to enter or travel through the premises. Indeed, one neighbor stated that event organizers would notify guests ahead of time that they should not drive or rent a Tesla vehicle to attend the event.

These are not the only Tesla restrictions enforced in China. Last year’s World University Games in Chengdu, several routes were closed to Tesla vehicles, and at a detention center in Sichuan province, Tesla drivers were told they couldn’t even approach the parking lot and had to park at least 50 meters away.

Additionally, last year a Yueyang airport prohibited Tesla vehicles from entering, claiming that the Sentry Mode may reveal private data about the region’s geography and landscape. The American automaker launched a local data center in August 2023 and claims that all data generated by cars sold in China is stored there to alleviate security concerns throughout the country.

According to Counterpoint analyst Abhilash Gupta, security concerns probably won’t have a big impact on the brand’s local sales. Gupta said:

“While national security complexities persist, these issues are likely to have minimal impact on Tesla’s competition with local players, given the company’s established reputation and proactive approach in addressing security challenges. In the medium to long term, the Chinese electric vehicle market appears to be favoring local brands like BYD over foreign counterparts. This local advantage is particularly crucial given the cutthroat competition in China’s saturated EV market, where sluggish adaptation to electric vehicles has left some international players struggling.”