Tesla vehicles are banned in China near political retreat

Jun. 21, 2022 7:08 AM ETTesla, Inc. (TSLA)By: Clark Schultz, SA News Editor37 Comments

Close up of a map of The Taiwan Strait.

Juanmonino/E+ via Getty Images

Tesla (NASDAQ:TSLA) vehicles continue to see sporadic bans in parts of China due to national security concerns.

A traffic police official from the Chinese coastal district of Beidaihe told Reuters that no Tesla (TSLA) vehicles will be allowed in the region for two months following the start of a Chinese Communist Party summer conclave that begins on July 1. The official cited "national affairs" as the reason for the Tesla ban.

Beidaihe traditionally hosts a summer conclave of China's senior leaders and retired elder statesman where they discuss personnel moves and policy ideas behind closed doors. Chinese President Xi Jinping's relationship with the U.S. is likely to be a major topic.

It is not the first ban of Tesla (TSLA) vehicles in China for security reasons. Tesla cars were also barred from driving on to some roads in the central city of Chengdu during a visit by Chinese President Xi Jinping to the city a few weeks ago. Last year, the Chinese military also banned Tesla cars from entering its complexes due to security concerns over the cameras installed on the vehicles.

China is a major part of Tesla's (TSLA) plan to boost its global market share. The Shanghai plant made about half of the 936K vehicles the U.S. automaker delivered last year.

Shares of Tesla (TSLA) rose 3.39% in premarket trading on Tuesday after the three-day U.S. stock market break.

Other Tesla news: Musk weighs in on supply chain issues, former employees sue Tesla.

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