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Elon Musk, CEO of Tesla, responded to the Chinese military's ban of Tesla from all its facilities. The billionaire said using the cars for spying would result in the electric-vehicles manufacturer being shut down.

Musk explained, “There’s a very strong incentive for us to be very confidential with any information. Tesla would get shut down if we used cars to spy in China or anywhere. " Musk expressed his concerns to a prominent Chinese forum during a virtual discussion.

China is Tesla's largest market after the US, accounting for about a quarter of the firm's global sales in 2020.

On Saturday, Musk said if a business did engage in spying on a foreign government, "the negative effects for that company would be extremely bad".

According to a report by Reuters, Friday, the Chinese military banned Tesla cars from entering complexes. The journal cited security concerns because of cameras installed on Tesla’s vehicles for auto-piloting.

Tesla's ban in military facilities in China coincided with top U.S. and Chinese diplomats meeting in Alaska. The meeting is the first in-person interaction since Pres. Joe Biden took office in January.

Chinese Electric-vehicles are Becoming a Threat to Tesla

In a panel discussion with Xue Qikun, the Chinese quantum physicist and head of the Southern University of Science and Technology, Elon demanded a mutual trust between the U.S. and China in his comments to the China Development Forum. The forum is a high-level business meeting that the State Council hosts.

China is the largest market in the world and the largest investor in renewable energy. Globally, Tesla had sold 147,445 cars there in 2020, making up 30% of its global sales. Nonetheless, competition has become fierce in the electric-vehicles market in the Asian country. Electric-cars manufacturers such as Nio Inc and Geely are becoming a threat to the U.S. company.

Controlling images and camera footages use in electric-vehicles is becoming a fast-growing challenge for electric and auto-pilot-supported cars.

Tesla CEO and Technoking, Elon Musk had already mentioned the issue of the cameras on Twitter in 2019 when he said: "It's there for when we start competing with Uber/Lyft & people allow their car to earn money for them as part of the Tesla shared autonomy fleet. In case someone messes up your car, you can check the video."