The attacks, orchestrated by Iranian-backed Houthi militants in support of the Palestinian Islamist group Hamas, have impacted one of the world’s crucial shipping routes. As Trans.iNFO has reported earlier, almost all major line shippers are avoiding the Red Sea, which has led to significant delays.
And, the longer route has also led to Tesla becoming the first company to publicly acknowledge a production interruption, stresses Reuters.
Tesla has confirmed the news on X (formerly known as Twitter):
#GigaBerlinBrandenburg
has to largely halt production for around two weeks due to attacks by Yemen’s Huthi rebels in the Red Sea.
„Due to a lack of components, we are therefore forced to suspend vehicle production at GigaBerlin for the period between January 29 and February 11,… pic.twitter.com/KwiGaLsvCo— Gigafactory Berlin News (@Gf4Tesla) January 12, 2024
Following the announcement, Tesla’s Frankfurt-listed shares dropped by 1.7% by 10:17 GMT, the news agency adds.
Industry analysts speculate that other automakers may also face repercussions from the Red Sea crisis.
Despite the production setback in Berlin, Reuters reported that Tesla has no plans to alter its production schedule at its Shanghai factory, which also serves the European market. The Shanghai factory is set to close for a week during China’s annual Lunar New Year holiday.
Photo credits @ Michael Wolf, Penig, CC BY-SA 3.0, via Wikimedia Commons