Tesla Model 3 are located in a Tesla Service Center.
Silas Stein | picture alliance | Getty Images
Tesla shares dipped in pre-market trade on Wednesday after a company executive said that cars initially scheduled for delivery in early February will be delayed due to the outbreak of the new coronavirus.
The electric carmaker began rolling out Model 3 vehicles from its Shanghai Gigafactory to Chinese customers in January.
Tesla has kept its Shanghai factory closed after the Lunar New Year following government guidelines.
“The proposed delivery (of cars) in early February will be delayed,” Tao Lin, vice president at Tesla, announced on Chinese microblogging service Weibo, according to a CNBC translation, in response to a question from a user.
“We will catch up the production line once the outbreak situation gets better.” Tesla shares were 2.7% lower in pre-market trade.
Tesla Chief Financial Officer Zach Kirkhorn said on the company’s quarterly investor call last week that its Shanghai factory will remain closed for an extra week to a week-and-a-half.
“This may slightly impact profitability for the quarter but is limited as the profit contribution from Model 3 Shanghai remains in the early stages,” he said.
China is seen as a potential huge market for Tesla. Its stock has been on a tear and has more than doubled this year. But on Wednesday, Canaccord downgraded the company to a “hold” from a “buy,” although it kept its price target at $750 a share. The firm said investors should wait to purchase Tesla stock after the massive price rally it’s had.
