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Tesla tumbles as coronavirus weighs on Shanghai factory – Source Reuters Tech News

SAN FRANCISCO (Reuters) – Shares of Tesla (TSLA.O) tumbled 19% 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.

FILE PHOTO: A Tesla sign is seen on the Shanghai Gigafactory of the U.S. electric car maker before a delivery ceremony in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo

With Tesla still up about 25% since the company posted its second consecutive quarterly profit a week ago, Canaccord Genuity cut its rating on Tesla to “hold” from “buy,” further shrinking the already small number of analysts who recommend buying the stock.

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.

The $2 billion factory is a key part of Chief Executive Elon Musk’s plan to make more…

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Source Reuters Tech News

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