Tesla says it’s temporarily halting most production at its German factory because of attacks in the Red Sea, a vital global shipping corridor. The electric vehicle maker said in a statement Thursday night that its factory near Berlin, which makes Model Y vehicles and batteries, will pause from Jan. 29 to Feb. 11
Quick Read
- Production Pause: Tesla is halting most production at its factory near Berlin from January 29 to February 11.
- Reason for Halt: The production pause is due to disruptions in global shipping caused by hostilities in the Red Sea.
- Impact on Supply Chain: Shipping companies are rerouting vessels via the Cape of Good Hope, leading to significantly longer transport times and supply chain gaps.
- Tesla’s Statement: Tesla cited armed conflicts in the Red Sea and the consequent transport route changes as affecting its Grünheide production.
- Background on Airstrikes: The production halt follows U.S.-led airstrikes against Yemen’s Houthi rebels in response to their attacks on Red Sea shipping.
- Resumption of Operations: Tesla plans to resume normal operations at the factory on February 12.
- Factory Details: The Grünheide factory, Tesla’s first in Europe, opened in 2022 and employs 11,000 workers.
The Associated Press has the story:
Tesla puts German factory production on hold as Red Sea attacks disrupt supply chains
Newslooks- BERLIN (AP) —
Tesla says it’s temporarily halting most production at its German factory because of attacks in the Red Sea, a vital global shipping corridor.
The electric vehicle maker said in a statement Thursday night that its factory near Berlin, which makes Model Y vehicles and batteries, will pause from Jan. 29 to Feb. 11.
It’s a fresh sign of how the hostilities in the Mideast are disrupting global manufacturing supply chains, with shipping companies reporting that they’re being forced to reroute vessels carrying goods and components on the longer route around the southern tip of Africa. Analysts say the detour adds 10 days or more to the journey.
“The armed conflicts in the Red Sea and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are also affecting production in Grünheide,” Tesla said. “The significantly longer transport times create a gap in the supply chains.”
The U.S. led airstrikes on Thursday against Yemen’s Houthi rebels in response to their attacks on Red Sea shipping,
Tesla said normal operations are expected to resume on Feb. 12. The factory in Grünheide, southeast of Berlin, is Tesla’s first in Europe. It opened in 2022 and employs 11,000 workers.
