Nuked The Chinese government has ordered the shutdown of Tesla’s new factory in Shanghai over coronavirus fears. The ramp of the model 3 production will be delayed by a week and a half. The shutdown may affect the company’s profitability in the first quarter of 2020.
Tesla is one of several companies affected by the Chinese government’s order. The order requires facilities to remain shut down until February 9th.
Tesla began delivering the first cars produced at its Shanghai factory at the end of 2019. The Shanghai Gigafactory is the first wholly foreign-owned car plant in China. Tesla hopes to gain a foothold in China, the world’s largest market for electric vehicles.
The new virus appeared in Wuhan at the start of December. It has already infected hundreds of people in nearly a dozen countries. The World Health Organization said it’s too early to declare a public health emergency globally.
The shanghai-produced model 3 only represents a tiny fraction of the company’s quarterly profits. The company does n’t expect too big of a financial hit, though.
