American electric vehicle manufacturer Tesla has reported that it is forced to suspend production at its facility near Berlin due to the crisis in the Red Sea that has disrupted supply chains.
– “Due to a shortage of parts, we are compelled to halt vehicle production at the Berlin-Brandenburg gigafactory from January 29 to February 11, with exceptions in a few production sub-areas,” Tesla stated in a press release published on Thursday.
Cargo ships are currently rerouting around the Red Sea, causing transportation to take significantly longer, which is leading to supply chain delays, they explained.
– “Production will be fully restored on February 12,” they added.
Tesla has been producing vehicles in Gruenheide, near Berlin, since March 2022 and employs approximately 11,500 workers.
Since the end of last year, carriers have been rerouting ships around the Cape of Good Hope to avoid attacks by Yemeni Houthis in the Red Sea, who are disrupting the navigation of vessels linked to Israel in support of Palestinians in the occupied Gaza Strip.
On Friday night, the U.S. and Britain attacked military targets in Yemen, justifying their actions as a means to protect navigation through the Red Sea. The Houthis have announced a response.
The Suez Canal and the Red Sea are the shortest maritime route between Asia and Europe, accounting for 10 percent of global trade. Navigating around the Cape of Good Hope extends the journey by about two weeks.
Tesla aims to double production in Gruenheide to one million vehicles per year. Currently, they produce over 250,000 vehicles annually. They also plan to double their battery cell production capacity to 100 gigawatt-hours per year, which raises concerns among environmentalists.
