China Bans Tesla Cars In City Hosting Secret Leadership Meet: Report

Tesla, Inc. TSLA is reportedly facing yet another hurdle in China, after having faced scrutiny last year over its car cameras that were deemed a threat in high-security zones. 

What Happened: Tesla cars are banned from entering the Chinese coastal city of Beidaihe for at least two months, beginning on July 1, Reuters reported, citing a local traffic police official. 

The district is reportedly hosting a secretive annual summer party leadership conclave.

The traffic official, who spoke anonymously, said the decision had to do with "national affairs," and an announcement to this effect will be made soon, the Reuters report said.

China's senior leaders usually meet in Beidaihe, a beach resort east of Beijing, to discuss personnel moves and policy ideas behind closed doors, according to Reuters. The dates of the meeting are invariably not made public.

Related Link: Tesla Bounces Back With Strong May Sales In China, Clocking 2000% Sequential Rise 

Why It's Important: Earlier this month, Tesla cars were prohibited from driving on some roads in the central city of Chengdu.

In 2021, China's military banned Tesla vehicles from its premises due to fears that cameras installed in them might be used for spying. Tesla chief executive officer Elon Musk had then quelled fears by stating that Tesla cars do not spy in China or anywhere else.

Tesla vehicles come installed with a slew of cameras and ultrasonic sensors that are meant to assist drivers with parking, and lane changing, among other things. 

China wasn't comfortable letting Teslas for fear that they might take visuals of sensitive locations. Tesla's practice of collecting data on car usage and drivers' personal information has also come under criticism in China.

Price Action: Tesla closed Friday's session 1.72% higher at $650.28, according to  Benzinga Pro data.