Tesla says China has ordered its Shanghai factory shut down over coronavirus fears

CHINA-SHANGHAI-TESLA-GIGAFACTORY-MODEL Y (CN) Xinhua/Ding Ting via Getty Images

The Chinese government has ordered the shutdown of Tesla’s new factory in Shanghai over coronavirus fears, which will delay the company’s production of the Model 3 there, executives announced in a call with investors. The ramp of the Model 3 production will be delayed by a week and a half and the shutdown may “slightly” impact the company’s profitability in the first quarter of 2020, Tesla finance chief Zach Kirkhorn said.

“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,” he said on the call.

Tesla began delivering the first cars produced at its Shanghai factory at the end of 2019. The deliveries marked an important milestone for Tesla,...

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