Tesla Pausing German Factory Operations Citing Red Sea Disruptions

Tesla said late January 11 that it would be suspending most car-producing operations at its factory near Berlin, Germany from January 29 to February 11 due to supply chain disruptions related to commercial vessels being rerouted away from the Red Sea because of attacks by Houthi rebels.

According to Reuters, Tesla is one of the first companies in the world to disclose that Houthi militant attacks in the Red Sea caused the organization to suffer output disruptions.

“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 having an impact on production in Gruenheide,” Tesla said in a statement. “The considerably longer transportation times are creating a gap in supply chains.”

The company added that production at the factory would resume in full on February 12. However, Tesla did not say what components the factory was missing or how it would be able to restore production by February 12.

Frankfurt-listed shares in Tesla were down 1.7% as of 10:17 a.m. GMT on January 12.

Tesla’s announcement came shortly after the U.S. and the U.K. announced they had “successfully conducted strikes” against Houthi targets in Yemen. The U.S. Air Force struck over 60 targets across 16 Houthi militant locations on January 11 in the Yemeni capital of Sanaa, according to U.S. Central Command.

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: https://www.supplychainbrain.com/articles/38849-tesla-halts-berlin-factory-operations-due-to-red-sea-disruptions