China’s Tesla Wannabe Has a Big Brother Problem

Investors are throwing billions of dollars at connected cars. The technological advances that enable vehicles to be linked into wireless networks promise greater efficiency and, in theory, safety. They also open the possibility of being watched and monitored more closely — and that may be a problem for China’s self-proclaimed rival to Tesla Inc.

Nio Inc., the electric-vehicle maker that raised almost $1 billion in a New York initial public offering last month, is banking on its smart and connected car. But the plethora of cameras and sensors that dot its ES8 model has triggered concern over a potential threat to data privacy, an issue that was raised on a conference call hosted by Citigroup Inc. analysts and an auto product consultant this month.