rtmark
LearnBonds.com

Tesla Gains Shanghai Government Support To Combat Coronavirus Production Drop

Tesla (TSLA) May Soon Start Production at Its Chinese Gigafactory

The Tesla electric automaker has quite recently set up a factory within Shanghai, the financial hub of China. Production has now been set to resume on the 10th of February, assisting to help combat the effects of the coronavirus epidemic. The assistance comes from none other than the Shanghai government, as an official from it had stated on Saturday.

Delay Amid Virus Outbreak

A large number of factories all across China have shut down in late January. This isn’t exceptional in and of itself, as the Lunar New year holiday comes at this time, and many wish to celebrate. However, the factories were set to go back into operation on the 30th of January, instead of being delayed more as the Chinese government tries and rein in the new coronavirus outbreak. As it stands now, the flu-like virus has a death toll over 700, one that is unlikely to stay static as more get infected.

On the 30th of January, 2020, Tesla warned the world that the company was expecting a delay of a week to a week and a half when it comes to the shanghai-built model 3 car ramp-up that was scheduled to happen.  The suspension was due to the recent epidemic of the coronavirus, having severely affected the supply and communication chains of China across its various provinces. Of all the things due to happen, no one expected a viral outbreak.

Tesla Gains Shanghai Government...

Logistical Complications

Tao Lin, the Vice President of Tesla, explained that production would start once again, but only on the 10th of February.

Xu Wei, a spokesman for the municipal government of Shanghai, gave a public statement about the matter, as well. Xu Wei explained that the government was making efforts to help companies resume production after the practical difficulties these various firms have faced in light of the recent viral outbreak.

Tesla’s new Shanghai factory cost the company $2 billion to get off the ground, having been supported by the local government as well. Production already started back in October, and deliveries began last month.

Maintaining Health Amid Chaos

Other than aiding efforts to restart production, the government in Shanghai also made a statement about asking banks to ease up on some businesses. The government will ask banking firms to extend loans with preferential rates towards small companies, as well as exempt firms from sectors hit the hardest by the virus, like hospitality, from value-added tax. These represent a few of several measures the government is doing to try and keep business flowing amid the outbreak.

China’s stock market suffered an 8% drop as the virus scared various investors, as well.  The Chinese government was forced to push liquidity in the market already, to try and control the damage done, but they seemed to have factored out 8% of the cash they needed. With any luck, the Coronascare will die down, as well.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • 0% Commission
  • Trade Stocks Via CFDs
  • Authorized & regulated by the FCA

Min Deposit

$100

Charge per Trade

Zero Commission

Rating

Visit Now

80.5% of retail investor accounts lose money when trading CFDs with this provider.

Available Assets

  • Total Number of Stocks & Shares+2000
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Future
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • Dax Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire transfer
  • Credit Cards
  • Bank Account
  • Paypal
  • Skrill
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Ali Raza

A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.