Tesla’s sees shares increase by 9% after reopening of Shanghai factory

Tesla’s sees shares increase by 9% after reopening of Shanghai factory

- Tesla's shares experienced a surge on Monday, 10 February, 2020, after the company's Shanghai factory was reopened

- The factory was shut down following fears about the possible spread of the coronavirus

- The Chinese government has meanwhile assured the company that it would assist it to get its factory running once again

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Tesla’s shares experienced a nine percent surge after the company’s Shanghai Gigafactory reopened.

The rise in shares was recorded in the morning of Monday, 10 February. The factory was closed down following fears of the spread of the coronavirus.

READ ALSO: Ghana’s economy ranked as one of Africa’s best options for growth

The increase in share price follows a week of swings in which it recorded both double-digit gains and double-digit losses.

Per a report by Business Insider, the rise in shares was a direct result of an announcement of the reopening of the Shanghai plant.

Briefly.co.za has learned that the Chinese government has also promised assistance to the car manufacturer in order to resume production.

According to Tao Lin, a Tesla vice president, the closure would probably delay deliveries of some Model 3 sedans made at the factory.

However, the delay is not expected to have any significant effect on Tesla’s first-quarter financial results as the Shanghai factory is not a major contributor to earnings.

In other news, the vice president, Dr. Mahamudu Bawumia, says all customers of defunct savings and loans and microfinance companies will be paid their locked up funds in full, including DKM customers who were affected in 2015.

This is the second time a high government official has made the assurance following a directive by President Akufo Addo to the Bank of Ghana and the Ministry of Finance, to provide liquidity for the customers to be paid.

The Private Enterprise Federation (PEF) has however criticized government for not paying the customers despite these directives.

Speaking at a town hall meeting in the Ashanti region, Dr. Bawumia noted that the government has already spent over GHc13 billion in payments to depositors of banks and other financial institutions.

He added that President Akufo-Addo has promised no depositor would lose his investments.

He went on to say that the government is in the process of clearing the mess created by the National Democratic Congress (NDC) in the foreign sector.

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Source: Briefly.co.za

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