Elon Musk Says Tesla Won’t Share Data From Its Cars With China Or U.S.

SHANGHAI—Tesla Inc. would never provide the U.S. government with data collected by its vehicles in China or other countries, Elon Musk, the company’s chief executive, told a high-level conference in China.

Mr. Musk’s assurance that Chinese customer data is fully protected followed the Chinese government’s decision to restrict the use of Tesla cars by military personnel or employees of key state-owned companies, as first reported by the Journal on Friday. Beijing had acted out of concern that sensitive data such as images taken by the cars’ cameras could be sent to the U.S., according to people familiar with the matter.

Speaking via video link Saturday to the government-backed China Development Forum in Beijing, Mr. Musk said that no U.S. or Chinese company would risk gathering sensitive or private data and then sharing it with their home government.

“Whether it’s Chinese or U.S., the negative effects if a commercial company did engage in spying—the negative effects for that company would be extremely bad,” Mr. Musk said. If Tesla used its cars to spy in any country, he said, it would be shut down everywhere, which he called “a very strong incentive for us to be very confidential.”

Concerns about commercial espionage have become overblown, Mr. Musk said, citing the case of the video platform TikTok—owned by Chinese tech company Bytedance Ltd.—which faced a U.S. ban last year before being reprieved.

“Even if there was spying, what would the other country learn and would it actually matter? If it doesn’t matter, it’s not worth thinking about that much,” Mr Musk said. U.S. concerns about Chinese spying via TikTok are irrational, he argued: The platform’s videos mostly show people “just doing silly dances.”

Tesla has been seen as a model foreign company in China. It won strong support from Shanghai authorities to set up in the city, and in 2018 became the first foreign auto maker in China to gain approval for a wholly owned factory—that is, without a local joint-venture partner. Chinese state banks financed the project.

China has also become a core market for Tesla, last year accounting for about a quarter of its global sales of roughly 500,000 vehicles.

While continuing to expand the Shanghai plant and ramp up local production of the Model 3 sedan and the Model Y compact crossover vehicle, Tesla had its first serious run-in with the Chinese authorities last month. The State Administration for Market Regulation, the country’s top market regulator, publicly rebuked the company over quality issues.

Tesla responded with a statement saying it “sincerely accepted the guidance of government departments” and would make improvements having “deeply reflected on [its] shortcomings.’

The Chinese owner of bargain app Temu reported slower quarterly profit and revenue growth, capping a turbulent year for the e-commerce giant as it faced stiff competition at home, geopolitical tensions abroad and U.S. tariff uncertainties.

PDD Holdings on Thursday said fourth-quarter revenue climbed 24% to 110.61 billion yuan, equivalent to $15.30 billion, missing a Visible Alpha estimate of 117.83 billion yuan. It was the slowest pace of growth since the first quarter of 2022.

Net profit rose 18% from a year earlier to 27.45 billion yuan, topping analysts’ expectations of 27.00 billion yuan. However, the growth was slower than the 61% rise in the third quarter and the more than twofold increase a year earlier.

“Looking ahead, we will continue to prioritize investments in the platform ecosystem as the cornerstone of our long-term value creation strategy,” said Jun Liu, PDD’s vice president of finance.

Jefferies analysts in a note said PDD’s top-line miss was due to slower-than-expected revenue growth from transaction services, while revenue from online marketing services and others was in line with consensus.

The easing momentum contrasted sharply with the stunning growth rates the company delivered in past years. PDD last year repeatedly warned of a slowdown, pointing to intensifying competition and external challenges.

Pinduoduo, the company’s discount platform in China, has grown rapidly since it launched nearly a decade ago, taking market share from e-commerce stalwarts Alibaba and JD.com . Its sister platform Temu burst onto the international scene in 2022 and swiftly gained attention in the U.S., attracting customers with low prices.

However, Temu has also encountered regulatory scrutiny as it expands overseas. U.S. President Trump in February delayed his plan to end a provision for China imports that lets platforms avoid paying import duties and customs inspections on low-value packages, offering the likes of Temu a brief reprieve.

For the full year, PDD’s total revenue rose 59% to 393.84 billion yuan and net profit climbed 87% to 60.03 billion yuan.

Last month, rival Alibaba posted its fastest pace of revenue growth since late 2023, with revenue for the latest quarter rising 7.6% to 280 billion yuan. Online retailer JD.com earlier this month nearly tripled its quarterly net profit as revenue climbed 13% to 346.99 billion yuan.

U.S.-listed PDD was recently 6.5% lower in premarket trading after the results.

Elon Musk Says Tesla Won’t Share Data From Its Cars With China Or U.S.

Beijing has restricted use of Tesla cars by military personnel or employees of some state-owned companies.

Fourth-quarter revenue climbed 24% to 110.61 billion yuan, equivalent to $15.30 billion, but missed estimates.