Bloomberg is reporting that coronavirus worries in China is receding and travel demand is rebounding.
This is an awesome news for Tesla buyers in China that are waiting for their car delivery this month. Although Tesla Giga Shanghai was only offline for about a week last month, following the coronavirus outbreak and Chinese new year, the electric car maker did suffered a minor setback due to the virus affecting some part suppliers, such as hardware 3.0.
Some buyers complained their Model 3 was delivered with hardware 2.5 instead of 3.0, forcing Tesla CEO Elon Musk to comment.
According to Bloomberg, Reservations for domestic flights and hotels in China are recovering from a coronavirus-induced slump as people return to work across the nation, online travel company Tongcheng-Elong Holdings Ltd. said.
Hotel bookings in the week to March 1 surged 40% from the previous week, while peak daily bookings for domestic flights soared 230% from the lowest level recorded in February, the company said in a statement. Bookings for domestic flights in June jumped 250% in the last week of February from the previous week, indicating an improvement in consumer confidence, it said.
Some Chinese airlines are offering tickets at what are known colloquially as cabbage prices as they start restoring seat capacity following drastic cuts enforced by the coronavirus. OAG Aviation Worldwide said the country’s carriers are returning nearly 3 million seats into scheduled services this week, primarily for domestic routes.
2020 first quarter is predicted to be a big mess for major companies that rely on China, but as we all know Tesla is known to ramp up delivery towards end of quarters, this may have little impact on Tesla.
Generally, this is a positive news for the entire stock market.