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Tesla China factory shuts down amid coronavirus outbreak

The order comes from the Chinese government, which has told all private companies to temporarily close shop.

Tesla Model 3 deliveries in China
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Tesla Model 3 deliveries in China

China will have to wait a little longer for more Model 3s.

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As the coronavirus spreads across mainland China, the state government has ramped up efforts to contain the outbreak. For its latest measure, private companies have been told to temporarily shut their doors in Shanghai, Tesla  among them.

The electric carmaker opened its first foreign production plant earlier this month in Shanghai, China, and mass deliveries have been underway. Now the plant will shut down for up to a week and a half, The Verge reported on Wednesday. Tesla's finance boss, Zack Kirkhorn, announced the mandatory closure during Tesla's fourth quarter call with investors. He added the closure may "slightly" affect quarter one profits.

Kirkhorn reiterated on the call that any financial impact should be minor since Chinese deliveries only represent a small portion of quarterly profits. Positive news overshadowed the grim news of the plant shut down, however. The carmaker revealed better than expected earnings and beat Wall Street expectations. In addition, the first Model Y crossovers will begin production this March ahead of schedule.

Still, the coronavirus, with nearly 8,000 confirmed cases as of Wednesday, put a damper on things. The carmaker expects a big 2020 with 500,000 vehicle deliveries planned. Tesla had just begun ramping up production at the facility. All private facilities will remain closed until Feb. 9, though utility firms and healthcare industries remain open.

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Sean Szymkowski
It all started with Gran Turismo. From those early PlayStation days, Sean was drawn to anything with four wheels. Prior to joining the Roadshow team, he was a freelance contributor for Motor Authority, The Car Connection and Green Car Reports. As for what's in the garage, Sean owns a 2016 Chevrolet SS, and yes, it has Holden badges.
Sean Szymkowski
It all started with Gran Turismo. From those early PlayStation days, Sean was drawn to anything with four wheels. Prior to joining the Roadshow team, he was a freelance contributor for Motor Authority, The Car Connection and Green Car Reports. As for what's in the garage, Sean owns a 2016 Chevrolet SS, and yes, it has Holden badges.

Article updated on January 30, 2020 at 7:23 AM PST

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Sean Szymkowski
It all started with Gran Turismo. From those early PlayStation days, Sean was drawn to anything with four wheels. Prior to joining the Roadshow team, he was a freelance contributor for Motor Authority, The Car Connection and Green Car Reports. As for what's in the garage, Sean owns a 2016 Chevrolet SS, and yes, it has Holden badges.
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