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)…
BMW reveals redesigned X5 with petrol, hybrid, EV, and hydrogen options
BMW couldn't decide on a powertrain, so it launched all of them
BMW X5

BMW has pulled the wraps off the fifth-generation X5, giving one of its best-selling luxury SUVs its biggest overhaul yet. The new model brings a fresh Neue Klasse-inspired design, a completely redesigned interior, and the broadest choice of powertrains the X5 has ever offered. Alongside petrol, diesel, and plug-in hybrid versions, BMW has introduced the first fully electric iX5, while confirming that a hydrogen-powered X5 will join the lineup at a later stage.

More powertrain choices, more technology, and a fresh design

Read more
Tesla has a battery theft problem
Even Tesla's batteries can't wait to hit the road
Tesla cars at Superchargers

Tesla is facing an unusual security problem in the US, and it is happening before many of its batteries even make it onto the road. According to an investigation by WIRED, multiple truckloads of Tesla batteries have allegedly been stolen directly from the company's Nevada Gigafactory, highlighting a growing wave of organised cargo theft targeting high-value technology shipments.

Cargo theft is becoming a serious problem for Tesla

Read more
Tesla’s arch rival has already won at charging tech. Now, it’s testing a self-driving breakthrough
Transportation, Vehicle, Car

BYD has made no secret of its ambition to build more of its own technology. That includes everything from batteries to electric motors, and now even the AI chips that power advanced driver assistance systems. But despite all that momentum, the company’s latest move suggests it’s not ready to cut ties with outside chipmakers just yet. Instead, BYD appears to be taking the practical route.

A smart detour before the destination

Read more