Coronavirus: China asks Tesla to shut down Shanghai factory


San Francisco, Jan 30 (IANS): Amid the threat of the novel coronavirus, China has asked Tesla to temporarily shut down its Shanghai factory, a move that may "slightly" impact the profitability of the Elon Musk-led electric car company in the first quarter of 2020, top company executives have said.

In a call with investors, the executives announced that the shutdown of the Shanghai factory will delay the company's production of the Model 3 there, The Verge reported on Wednesday.

Tesla is one of the many firms impacted by the Chinese government's order, asking facilities to remain closed until February 9.

"At this point we're expecting a one to one-and-a-half week delay in the ramp of Shanghai built Model 3s due to a government required factory shutdown," Tesla finance chief Zach Kirkhorn was quoted as saying on the call.

The electric car maker started delivering the first vehicles produced at its Shanghai factory at the end of last year.

Tesla started production in China with the hope of capturing a pie in the country's growing market for electric vehicles.

But the outbreak of the new coronavirus may impact some of its plans even though Tesla reported $24.6 billion in revenue in 2019 on the back of a fourth quarter revenue figure of about $7.4 billion.

In the fourth quarter of 2019, the company reported a $105 million profit, finishing the year with back-to-back profitable quarters.

The new coronavirus, which originated in China, has also affected several other companies, including Google, which on Wednesday announced temporary shutdown of its all China offices, said the report.

  

Top Stories


Leave a Comment

Title: Coronavirus: China asks Tesla to shut down Shanghai factory



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.