Tesla has seen its fair share of ups and downs, and Elon Musk is certainly not a stranger to controversy. The latest upset to come out of China has Tesla backed into a corner and is poised to create financial upset on a large scale. A recent report from Aljazeera quotes Bloomberg as saying this was triggered by issues with security. China “has concerns that the world’s biggest maker of electric vehicles is collecting sensitive data via the cars’ in-built cameras in a way the Chinese government can’t see or control.” The only solution in the eyes of the Chinese government, is to prevent Tesla vehicles from being allowed anywhere near the military base. In order to ensure the highest levels of safety and security are maintained, the vehicles are no longer permitted within the boundaries of any military establishment. Employees of the military received notice of their new restrictions, and Tesla will surely feel the pinch.
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Tesla has always been quick to boast the effectiveness of their cameras and high-tech security features, never assuming that the very technology that sets them apart from other manufacturers could effectively be the sole reason they are blocked from certain regions.
In this particular case, the region they’re being banned from is one they rely heavily on. China is the world’s largest consumer of electronic vehicles, and Elon Musk relies heavily on the sale of Tesla vehicles in China to continue to expand the Tesla Brand. Without the support of Chinese consumers, the bulk of Tesla’s market will surely suffer, and there’s just no telling what sort of impact this move can make on the future of Tesla’s success.
At the moment the Chinese government is only concerned with possible security breaches which correlated directly with their military bases and they remain focused on this singularly. However, if other countries adopt this same mentality, the list of regions that could essentially follow suit and ban Tesla vehicles altogether, could have an absolutely devastating effect on Elon Musk’s corporation.
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Tesla boasts a number of cameras mounted both internally and on the external elements of their vehicles. The cameras are intended to support the advanced technology which senses the precise location of the vehicle and the level of attention being paid by the driver. These are critical to the full self driving features which set Tesla apart from other car manufacturers.
That very same advanced technology is what is currently considered to be the biggest wildcard for the Chinese government. Unwilling to risk that the car’s cameras could be used to collect location details, video camera coverage, audio recordings, and other critical data belonging to the Chinese military, the ban will remain in full force, and Tesla is effectively experiencing the first, of what is likely to be many restrictions.
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Sources: AlJazeera via Bloomberg, The Mercury News
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