Tesla suspends production in Germany due to attacks on ships in the Red Sea
Tesla will halt most of its production at a plant near Berlin for two weeks due to delays in parts deliveries caused by Houthi militant attacks on ships in the Red Sea.
This was reported by The Guardian.
The pause could result in about 5000-7000 cars not being assembled, the automaker said.
Attacks by Houthi militants on merchant ships in the Red Sea forced companies to use an alternative route around Africa. This significantly increases delivery time and disrupts supply chains, Tesla notes.
Tensions in the region rose after the United States and the United Kingdom launched missile strikes on Houthi positions in Yemen on January 11 in an attempt to stop the attacks on the ships. However, the militants vowed to continue their attacks.
The Red Sea accounts for 12% of the world’s shipping traffic. The alternative route has already begun to affect global trade, which declined by 1.3% in December.
Earlier, SPEKA wrote that Tesla has become the largest electric car manufacturer in the world.