Tesla Wins Data-Security Clearance in China

By Jiahui Huang

Tesla has become the first foreign automaker to win approval from data-security regulators in China, which could pave the way for its vehicles to be used by the government, state-run enterprises and at military sites.

The China Association of Automobile Manufacturers said late Sunday that Tesla's Model 3 and Model Y had been added to a list of vehicle models whose data use meets national security standards. It said 76 models from six automakers, including BYD, Li Auto and Nio, had also been cleared from data-security concerns.

Winning approval requires that automakers adhere to government regulations on data collection, including by anonymizing any external data recorded by car sensors, such as people's faces and license plates.

Until now, Tesla's cars have been banned from use by government agencies, state-owned enterprises and at military sites due to data-security concerns.

The Chinese Ministry of Industry and Information Technology and other departments released regulation on auto-data security in August 2021. They also require automakers collect and store data within mainland China.

In 2021, Tesla built a data center in Shanghai to localize its data storage.

Tesla delivered 89,064 cars made at its Shanghai plant in March, recovering from February when it posted its lowest monthly figure since late 2022. Tesla kept its rank as the second top seller of electric vehicles in China last month, with Warren Buffett-backed BYD taking the No. 1 spot.

Tesla's chief executive, Elon Musk, made a surprise visit to Beijing on Sunday and met with top government officials including Premier Li Qiang.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

April 29, 2024 03:24 ET (07:24 GMT)

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