Tesla to Shut Down California Factory Next Week

Following recent pressure from local authorities, Tesla (NASDAQ: TSLA) announced Thursday afternoon that it is shutting down its factory in Fremont, California, next week. The move, of course, is in response to a rapidly evolving situation amid the coronavirus outbreak.

Not being able to produce vehicles in Fremont will undoubtedly weigh on total vehicle production during the last week of first quarter and into the beginning of the second quarter, or until the factory reopens. Furthermore, since the automaker's deliveries track closely with production, vehicle deliveries in 2020 will likely be negatively impacted as well.

Tesla factory. Image source: The Motley Fool.

Source Fool.com