Tesla’s Shanghai Gigafactory Resumes Production
Following a temporary suspension of production due to the coronavirus outbreak, California-based EV-maker Tesla’s Shanghai gigafactory has resumed its normal business. As a result, Tesla’s share price stopped its plummet and rebounded, rising 3.1% on Monday. Just about a week ago, Tesla’s share price was valued at a peak of around $961 while the stock now sits at around $770. However, the iconic EV-maker has seen its share price soar from just around $330 in mid-December of 2019.
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Tesla’s shares have more than doubled in the last 90 days, and the company’s recent capital market success has vaulted their valuation to $81.39 billion, making them the most valuable American automotive company.
Tesla CFO Zachary Kirkhorn said on the company’s Q4 2019 earnings call, “At this point, we’re expecting a 1 to 1.5 week delay in the ramp of Shanghai built Model 3 due to a government required factory shutdown. This may slightly impact profitability for the quarter, but is limited as the profit contribution from Model 3 Shanghai remains in the early stages.”