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.
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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