Tesla’s German factory suspends production over Red Sea delays

Tesla, an electric car maker, has announced that the majority of production at its German manufacturing would be suspended for two weeks. The company cited a scarcity of parts resulting from shipping delays brought on by attacks by the Huthi rebels in the Red Sea.

Shortly before the United States and Britain declared early on Friday that they had launched airstrikes against the rebels backed by Iran for their persistent threats to shipping in the vital waterway, the suspension was made public.

The Red Sea attacks had led to delays that created a “gap in the supply chains”, resulting in production at the facility southeast of Berlin being suspended “with the exception of a few sectors”, Tesla said in a statement sent to AFP.

“From February 12, production will resume in full,” it added.

The Huthis, who are backed by Iran, have increased their attacks on military and commercial ships in the Red Sea since the beginning of the Israel-Hamas conflict, claiming this is in support of the Palestinian people in Gaza.

Because of this, a few maritime companies have chosen to bypass the river, which serves as the entrance to the Suez Canal, necessitating a far longer route between Europe and Asia.

According to the Huthi-run Al-Masirah TV station, there were massive US and British airstrikes early on Friday morning that attacked an airbase, airports, and a military camp in rebel-held Yemen. AFP correspondents and witnesses also reported hearing bombardments.

Following the attacks in the Red Sea, US President Joe Biden referred to the strikes as “defensive action” and declared that he “will not hesitate” to order additional military action if necessary.

Approximately 11,500 workers work at the Tesla factory south of Berlin, which began operations in 2022 and produces roughly 250,000 cars annually. The company intends to expand the facility to double production.

This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
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