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.
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.