Tesla plans to pause most production at its only European factory because of supply chain problems arising from attacks in the Red Sea.
The carmaker said it would halt output at its huge factory near Berlin for two weeks from January 29 because attacks on ships along the vital trade route had delayed the delivery of components, CNN affiliate RTL reported Friday.
Tesla has not responded to a CNN request for comment.
The Grünheide factory is capable of producing 375,000 cars a year for customers across Europe. Tesla (TSLA) plans to fully resume production on February 12, RTL said.
In recent weeks, Houthi militants, based in Yemen, have ramped up attacks on vessels traveling through the Red Sea, saying they are revenge for Israel’s war against Hamas in Gaza.
As a result, six of the world’s 10 biggest shipping companies — namely Maersk, MSC, Hapag-Lloyd, CMA CGM, ZIM and ONE — have been largely or completely avoiding the Red Sea. Carriers have been forced to reroute many ships around the Cape of Good Hope in South Africa, resulting in delays of up to three weeks.
This is a developing story and will be updated.
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