Tesla has announced a pause in most car production at its Berlin factory from January 29 to February 11. This decision is due to a shortage of components, linked to changes in transport routes caused by attacks on vessels in the Red Sea.
This disruption is a direct result of the crisis in the Red Sea, where Iranian-backed Houthi militants have launched attacks in solidarity with Hamas against Israel in Gaza, affecting Europe’s largest economy. Tesla’s announcement marks the first instance of a major company disclosing a production halt due to this situation. The disruption has also impacted other companies, including Geely and Ikea, leading to delays in deliveries.
“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 having an impact on production in Gruenheide. The considerably longer transportation times are creating a gap in supply chains,” said Tesla in a statement, reports Reuters.
The crisis has led to significant changes in global shipping patterns, with top companies like Maersk and Hapag-Lloyd rerouting their vessels around South Africa’s Cape of Good Hope. This rerouting, expected to continue for the foreseeable future, adds approximately 10 days and $1 million in extra fuel costs to journeys from Asia to Northern Europe. That’s a 36-day journey around Africa, versus a 26-day journey through the Suez Canal.
Tesla plans to resume full production at its Berlin facility on February 12, although detailed information on how the production will be restored and which components are missing has not been disclosed. Giga Berlin produces Tesla’s Model Y compact crossover SUV, which has become the top-selling vehicle in the world.