Red Sea raids cause supply routes to be disrupted, thus Tesla halts production at its German factory
The Model Y vehicle and battery factory near Berlin will be closed from January 29 to February 11.
Tesla has announced that it is temporarily stopping the majority of production at its German manufacturing due to attacks in the Red Sea, a crucial shipping route for the world.
The electric vehicle company stated in a statement Thursday night that its production near Berlin, which builds Model Y vehicles and batteries, will cease from Jan. 29 to Feb. 11.
It’s a fresh reminder of how the battles in the Mideast are disturbing global manufacturing supply networks, with shipping companies claiming that they’re being compelled to reroute vessels carrying commodities and components on the lengthier path around the southern tip of Africa. According to analysts, the detour prolongs the trip by at least ten days.
According to Tesla, regular business should resume on February 12. Tesla’s first facility in Europe is located in Grünheide, southeast of Berlin. Operating since 2022, it has 11,000 employees.
