Tesla’s shares gained 3.1% Monday, closing at $771.28, amid reports that the U.S. electric car maker has resumed production at its Shanghai factory this week. Production had previously been shut down due to the novel coronavirus outbreak.
The restart of production comes two weeks after Tesla’s chief financial officer Zach Kirkhorn announced during an earnings call that the Chinese government had required the Shanghai plant close due to 2019-nCoV concerns, which would delay the deliveries of the China-made Model 3 sedans.
The Shanghai municipal government previously said it would “make all efforts” to help Tesla and other companies resume normal operations, Reuters reported. Analysts cited these remarks as the reason behind Tesla’s climb on Monday.
In addition to building the homegrown Model 3s, Tesla has also announced plans to produce Model Y sports utility vehicles at the Shanghai plant, the automaker’s first facility outside of the U.S..
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