Tesla expecting delay at China factory caused by coronavirus
Tesla expects a production delay of one to one-and-a-half weeks at its Shanghai factory due to a government-ordered shutdown prompted by the coronavirus.
The shutdown won’t have a significant impact on Tesla’s first-quarter financial results, CFO Zach Kirkhorn said, as the Shanghai factory is not yet a major contributor to the electric-car maker’s earnings.
At least 170 people in China have died from the coronavirus, which has spread to all of the country’s major regions.
Tesla started delivering Model 3 sedans made at the Shanghai factory only 11 months after construction began,
a development that indicates the company’s history of production delays may be behind it.
The first deliveries of Shanghai-made Model 3s have likely contributed to the massive increase in Tesla’s stock price over the past three months,
from $255 when the company reported a surprise third-quarter profit in October to $646 when markets opened on Thursday.
Business Insider