Shares are down 19 per cent
SAN FRANCISCO — Shares of Tesla tumbled 19 per cent on Wednesday, hitting the brakes on a dramatic rally after a senior executive warned the coronavirus outbreak in China would delay deliveries of Model 3 cars made at its Shanghai plant.
Tesla Vice President Tao Lin said on the Weibo social media platform that car deliveries from its new Shanghai plant would be temporarily delayed and that the company planned to restart production on Feb 10. Tesla last week said it expected a delay of up to a week and a half in the ramp-up of Model 3 production at the plant after the government ordered it to shut the factory due to the outbreak.
“Given the 3,000 per week China Model 3 production expectations in a country that remains on lockdown, we feel a reset of expectations in Q1 is likely and thus needs to be reflected in the valuation,” Canaccord analyst Jed Dorsheimer wrote in a report, leaving his price target unchanged at US$750 per share.
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