Tesla wins data security concerns in China

By Naveen Goud
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Tesla Inc, the pioneering electric car manufacturer with aspirations in automated driving technology, has triumphed in gaining approval from China, overcoming previous concerns about data security. Several years ago, the Chinese government imposed a ban on the sale of Tesla vehicles within its borders due to fears of excessive data collection from users.

However, the tide has turned following a visit by Tesla CEO Elon Musk to Beijing. Premier Li Qiang, the leading official of the Chinese Communist Party, announced that Tesla can now establish a manufacturing plant in China, citing compliance with the country’s stringent data laws. This pivotal decision coincided with Musk’s visit to the Asian nation.

Tesla has been vocal about its commitment to data security, particularly with its upcoming Full Self-Driving software. The company has secured permission to transfer data abroad, a significant milestone for its operations in China. Notably, Tesla plans to offer new features, such as full self-driving capability, through a subscription model, emphasizing continuous oversight of data usage.

However, speculation about the impact on competitors like BYD remains premature. Established players like BYD boast loyal customer bases, presenting a formidable challenge for newcomers like Tesla to carve out their share of the market.

It’s worth noting that all companies operating in China are prohibited from transferring locally generated data to external servers. Tesla has been granted a special exemption from this regulation, provided it adheres to the latest information security standards. This development is expected to fuel a surge in sales for Tesla’s Model Y and Model 3 in the coming weeks.

Bloomberg reports that Tesla vehicles offer users the ability to pause or halt data collection, a feature acknowledged by the Chinese Association of Automobile Manufacturers.

Currently, Tesla cars are being manufactured at the Shanghai Gigafactory, where strict adherence to regulations is enforced. As Tesla continues to navigate the complex landscape of data security and regulatory compliance in China, its presence in the world’s largest automotive market is poised for further expansion.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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