Shanghai govt. to lend a helping hand to Tesla for resuming production

	
Tesla’s Shanghai plant to recommence its production with state government support amid the pandemic spread.
	
Government to ask banks to extend loans to SMEs.


The U.S carmaker, Tesla, has reportedly announced resuming its automobile production, with support from the Shanghai government, from 10th February 2020. Apparently, the production was brought to halt for a week considering the spread of coronavirus across the nation.

According to reliable sources, several countries across China shut in late January on the grounds of the Lunar New Year holiday and was due to end on January 30th. However, the shutdown extended in a bid to contain the spread of virus, Corona, that took lives of almost 700 people nationwide.

Speculations have it that Tesla had warned the authorities that the company would witness a week and half of delay in upgradation of Shanghai built Model 3 cars due to the virus outbreak, which has now severely disturbed communications and supply chains across the country.

Tesla Vice President, Tao Lin recently made declarations regarding the commencement of production. He cited that productions would shortly resume and car deliveries from the plant would be temporarily delayed.

Meanwhile, Xu Wei, the Shanghai municipal government spokesman reportedly quoted that government is set to render all kinds of support to key manufacturing firms including Tesla in resuming the businesses amidst practical difficulties faced. The authorities are anticipated to coordinate to make the productions happen as soon as possible. 

Moreover, the government also mentioned that it would ask banks to extend loans to small and medium companies and relieve firms in hard-hit sectors from value added tax, in line with other measures to bolster business during the pandemic.

For the records, Tesla’s USD 2 billion Shanghai unit is the company’s first outside US facility which was built with support from the local authorities. Furthermore, assistance like this would also apply to other foreign companies in the coming time.

Source credit: https://www.nasdaq.com/articles/shanghai-to-help-tesla-resume-production-amid-coronavirus-spread-2020-02-07