Tesla cars are famously high tech but spy cams aren't among their known features.
Even so, the firm's autos are now banned from Chinese military housing complexes.
According to Reuters sources, officials are concerned that cameras on the cars could be used for espionage.
Owners have been told to park outside military property, the sources say.
Tesla cars have several small cameras mounted externally to assist with parking and self-driving.
Some also have cameras in the rear-view mirror.
Chinese officials found the vehicles could record images of their surroundings, according to a Wall Street Journal report.
Now more than a few car owners could be affected.
Tesla sold over 18,000 Chinese-made vehicles just in February, sharply up on the previous month.