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Tesla Temporarily Halts Production at German Factory Due to Red Sea Attacks Disrupting Supply Chains

by Anna

Berlin, Germany – In response to the ongoing hostilities in the Red Sea, a critical global shipping corridor, Tesla has announced a temporary suspension of most production activities at its German factory located near Berlin. The electric vehicle manufacturer revealed that its facility, responsible for producing Model Y vehicles and batteries, will pause operations from January 29 to February 11.

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This move underscores the broader impact of geopolitical tensions in the Middle East on global manufacturing supply chains. The Red Sea conflicts have prompted shipping companies to reroute vessels carrying goods and components, opting for the longer journey around the southern tip of Africa. Analysts estimate that this detour adds 10 days or more to the standard shipping journey.

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“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 affecting production in Grünheide,” stated Tesla. “The significantly longer transport times create a gap in the supply chains.”

Last Thursday saw the United States leading airstrikes against Yemen’s Houthi rebels in response to their attacks on Red Sea shipping, exacerbating the disruptions in the region.

Tesla anticipates the resumption of normal operations on February 12. The Grünheide factory, situated southeast of Berlin, stands as Tesla’s inaugural manufacturing facility in Europe, having commenced operations in 2022 and employing 11,000 workers.

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