Tesla will halt most of its car production at its plant near Berlin from January 29th to February 11th. This was reported by the company, citing a lack of components due to changes in transport routes due to Yemeni Houthi attacks on ships in the Red Sea. The message is from Reuters.
The partial production shutdown is evidence that the Red Sea crisis has begun to affect Europe’s largest economy.
Attacks by Iran-backed Houthi rebels, in solidarity with the Palestinian Islamist group Hamas in its fight against Israel in the Gaza Strip, have severed one of the world’s most important sea routes. American electric vehicle maker Tesla is the first company to report a production disruption because of it.
A number of other companies, including Geely, China’s second-biggest carmaker, and Swedish home furnishings company Ikea also warned of supply delays.
“Armed conflicts in the Red Sea and related changes in shipping routes between Europe and Asia via the Cape of Good Hope are also impacting production at our Grünheide plant. Significantly longer transportation times create a gap in supply chains,” Tesla said in a statement.
Analysts expect that other automakers could also suffer from the Red Sea conflict.
“Relying on so many key components from Asia, and China in particular, is a potential weakness in the supply chains for any car manufacturer. Tesla relies heavily on China for battery components that must be shipped to Europe across the Red Sea, putting continuous production at risk,” said Sam Fiorani, vice president of AutoForecast Solutions, which tracks automotive supply and manufacturing chains.
“Can’t believe this is just about Telsa.” The company is probably only among the first to cover the issue,” he added.
