City
Epaper

Coronavirus: China asks Tesla to shut down Shanghai factory

By IANS | Updated: January 30, 2020 13:20 IST

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.

Open in App

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.

( With inputs from IANS )

Tags: teslaShanghaichinaZach Kirkhorngoogle
Open in App

Related Stories

Technology'Learning About Photosynthesis': Google Explains How Plants Use Light to Produce Oxygen With Animated Doodle

TechnologyFree WiFi Danger! Google Warns Users Against Connecting to Public Networks

TechnologyWhat Is Quadratic Equation? Google Doodle Celebrates One of Most Searched Mathematical Equations

Mumbai₹58-Crore Digital Arrest Scam: Maharashtra Cyber Probe Reveals Links to China, Hong Kong and Indonesia

CricketCricket Hong Kong China Unveils India’s Full Squad for Hong Kong Sixes 2025

टेकमेनिया Realted Stories

Technologye-Jagriti empowers consumers: 2.75 lakh users registered, 1.3 lakh complaints filed since January launch

TechnologyCorporate bond issuances rise 8 pc to Rs 6.3 lakh crore till October this fiscal: SBI report

TechnologyV-P Radhakrishnan highlights CAG's global standing as external auditor for WHO & ILO

TechnologyIndia’s AI shift from pilots to performance as 47 pc enterprises have multiple AI use cases: Report

TechnologyIndia's space programme soars with new milestones, eyes human spaceflight in 2025: Report