Skip to main content
  1. Home
  2. Cars
  3. News

Tesla’s Shanghai factory hit by temporary shutdown over coronavirus fears

Add as a preferred source on Google
 

As the Chinese authorities battle to contain the coronavirus outbreak, Tesla revealed on Monday, January 27 it has been ordered to suspend operations at its recently opened car factory in Shanghai.

Recommended Videos

The Shanghai government has ordered Tesla and all other private companies in the city to close their doors until February 9. Utility firms and companies related to healthcare are exempt from the order.

An online tracker set up by the Maryland-based Center for Systems Science and Engineering currently shows 101 confirmed cases of the coronavirus in Shanghai, and one death. Globally, as of Wednesday, January 29, there have been 7,783 confirmed cases globally — the vast majority of them in China — and 170 deaths, all on the Chinese mainland.

The Verge reported that in a call with investors this week, Tesla executives said the temporary shutdown of its Shanghai factory would likely delay production of its Model 3 there by about a week and a half, and may also have a slight impact on the electric-car maker’s profits for the first quarter of this year.

The suspension of operations comes just a few weeks after Tesla celebrated the delivery of its first batch of Shanghai-assembled Model 3 cars to customers in China.

Tesla has been taking orders for the Model 3 in China since October 2019. The Silicon Valley automaker led by billionaire entrepreneur Elon Musk already sells Model S and Model X electric cars in the country, though these models are currently manufactured at its Fremont plant in California before being shipped to Asia.

Producing the Model 3 locally marked a major step forward for Tesla, which is keen to make a big splash in the world’s largest new-car market. With that in mind, executives will certainly be hoping the shutdown doesn’t go beyond the currently set date of February 9.

Other automakers are suspending operations at their factories in Wuhan, where the coronavirus outbreak is believed to have started. The city has nine car factories, including those operated as part of joint ventures involving PSA Group, Renault, and Dongfeng — China’s third-largest automaker — as well as dozens of parts suppliers.

U.S. tech firms are also taking action in response to the coronavirus outbreak, with Google closing its offices in China, Hong Kong, and Taiwan for the time being, and placing restrictions on business travel in the region. Google’s China-based operation deals primarily with sales and engineering for its ad business as the company’s online services remain blocked in the country.

Apple, Facebook, and Microsoft are also taking similar action as they wait to see how the coronavirus outbreak develops.

Trevor Mogg
Contributing Editor
Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…
Harley-Davidson’s electric future looks bleak as LiveWire warns it may not survive
LiveWire’s sales are growing, but mounting losses have left the electric motorcycle maker searching for a financial lifeline
Livewire One

Harley-Davidson's electric motorcycle brand LiveWire has warned it may not survive the next year. Recurring losses and limited funding have raised serious doubts about its ability to keep operating, leaving Harley's electric ambitions on shaky ground.

LiveWire reported $7.9 million in third-quarter revenue alongside an $18.6 million net loss. Selling more motorcycles hasn't brought the company close to covering its costs.

Read more
China’s latest tiny EV costs just $6,735 and somehow squeezes in five doors
The four-seat Bestune Pony joins the cute-car crowd with rear doors and a price that puts its Wuling rival squarely in view
Orange car, front three-quarter

FAW's five-door Bestune Pony has launched in China from 44,900 yuan, roughly $6,735. The tiny EV packs four seats into a cheerful little box just 3.35 meters long.

It looks like something you'd buy in a gift shop, but the layout makes room for everyday chores. There are four passenger doors and a rear hatch, so getting into the back doesn't require folding a front seat out of the way.

Read more
Volkswagen’s smartest EVs are launching in China while the US and Europe wait
China-only models already have the software, charging, and driving technology VW’s Western cars are still waiting to receive
Volkswagen ID UNYX 08

Volkswagen’s newest EVs in China are making its American and European models look unusually conservative.

With Xpeng’s help, VW has introduced 800-volt charging and advanced urban driving assistance. The new VEGA technology package brings its locally developed vehicle platforms and CEA electronic architecture under one umbrella. Bloomberg reports that Volkswagen intends to update VEGA every three months. Western buyers can find pieces of that package, but not the whole thing in a Volkswagen.

Read more