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Tesla Shanghai factory to resume production from Monday

Hu Yumo
Tesla will resume vehicle production starting on February10.
Hu Yumo

Tesla’s Shanghai factory will resume vehicle production from February 10 with the assistance of the city's government.

Government spokesman Xu Wei said that the management committee of Lingang New Area, where the factory is located, will help companies including Tesla handle the difficulties and return to normal production.

Tesla’s factory has been shut down since January 29 amid the coronavirus epidemic, which has delayed production of Model 3 vehicles by a week and a half.

Tesla finance chief Zach Kirkhorn said earlier in a call with investors that the shutdown may slightly affect the company’s profits in the first quarter. The electric carmaker doesn’t expect too big of a financial hit, though, as the Shanghai-produced Model 3 only represents a fraction of the company’s quarterly profits.

Hubei has a number of carmakers and autopart makers including Dongfeng Peugeot Citroen Automobile Co Ltd, SAIC General Motors Co Ltd and Dongfeng Honda, they have basically halted their production lines, and many others outside Hubei have also suspended vehicle production due to the outbreak. 

Cui Dongshu, secretary general of the China Passenger Car Association, said that the number of vehicle production in Hubei accounted for 8.8 percent of the country's total in 2019. He added that Hubei plays an important role in the county's automotive supply chain due to its location as a logistics center.

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