Elon Musk's Tesla factory in China just got up and running. Now its vehicle production there will be delayed because of the deadly Wuhan virus outbreak.
Beijing has taken extraordinary measures to try and contain the outbreak, including placing major cities on lockdown and extending the Lunar New Year holiday. Officials in Shanghai, where Tesla's China factory is located, extended the holiday period from January 30 to February 9.
"At this point, we're expecting a 1 to 1½ week delay in the ramp (up) of Shanghai-built Model 3 due to a government-required factory shutdown," Tesla's chief financial officer Zachary Kirkhorn said during an earnings call Wednesday.
Kirkhorn said the hit to Tesla earnings will be limited because profits from the China-made cars are still in the early stages. He added that the company is also keeping an eye on whether there will be supply chain disruptions for Tesla's California-made cars.
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