BERLIN (AP) — Tesla says it will temporarily halt most production at its German factory due to attacks in the Red Sea, a key global transportation corridor.
The electric car maker said in a statement Thursday night that it will temporarily suspend a factory near Berlin that makes Model Y vehicles and batteries from January 29 to February 11.
It's the latest sign of how hostilities in the Middle East are disrupting global manufacturing supply chains, forcing shipping companies to divert ships carrying goods and parts to long-distance routes around the southern tip of Africa. They report that they are no longer getting the benefits. Analysts say the detour will add more than 10 days to the journey.
Tesla said: “The armed conflict in the Red Sea and the resulting change in the transport route between Europe and Asia via the Cape of Good Hope are also impacting Grünheide production.” “Significantly longer transit times create gaps in the supply chain.”
The United States led airstrikes on Thursday in response to attacks on ships in the Red Sea by Yemen's Houthi rebels.
Tesla said normal operations are scheduled to resume on February 12. The factory in Grünheide, southeast of Berlin, is Tesla's first factory in Europe. It opened in 2022 and employs 11,000 people.
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