Facing pressure to shutter Tesla Inc.’s California factory from local authorities worried about the spread of coronavirus, Chief Executive Elon Musk changed direction, announcing plans to suspend production at its lone U.S. auto-making plant.

The move threatens to disrupt the Silicon Valley auto maker just as it was stepping up production of its latest vehicle, the Model Y SUV, which is part of Mr. Musk’s plan to boost deliveries globally by more than 36% this year.

...