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

InternationalEarthquake in China: Quake of Magnitude 6.0 Hits East China Sea

InternationalEarthquake In China: Several Missing As Multiple Buildings Collapse After 5.2-Magnitude Quake Hits Liuzhou

LifestyleGoogle Rolls Out Mother’s Day 2026 Doodle; Search Engine Giant Celebrates Occasion With Handcrafted Card

InternationalChina Factory Blast: At Least 21 Killed, Over 60 Injured in Explosion at Fireworks Plant in Guandu Township

InternationalChina Miracle: Man Survives After Heart Stops Beating for 40 Hours Using This Technology

टेकमेनिया Realted Stories

TechnologyIndia’s AI job postings surge nearly 6x since 2019

TechnologySouth Korea needs to bolster strategic ties with India: Report

TechnologyMaruti Suzuki India launches Smart Factory Lab for skill development in Lucknow

TechnologyANRF selects 10 research centres to boost multidisciplinary innovation

TechnologyOver 8.5 million developers use Google AI models monthly, plans $190 billion capex: Sundar Pichai