Electric car manufacturer Tesla is temporarily suspending production at its plant near Berlin from 29 January to 11 February due to delays in parts deliveries due to attacks on ships in the Red Sea.
The automaker, whose chief executive is Elon Musk, said the suspension could result in between 5,000 and 7,000 cars not being assembled.
The disruption to an important shipping route in the Mediterranean, forcing companies to use an alternative and much longer route around the southern tip of Africa, is starting to affect global trade, which fell 1.3 per cent at the end of 2023. Tesla, the second-biggest seller of electric cars, said:
“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 Grünheide. The considerably longer transportation times are creating a gap in supply chains.”
Last month, Tesla became the world’s best-selling electric car maker overtaking its Chinese rival BYD (Build Your Dreams). BYD has been backed by US investment billionaire Warren Buffett since 2008.
The route through the Red Sea, which gives ships access to the Suez Canal, accounts for about 12 per cent of global maritime traffic. Tensions escalated on Thursday when the US and Britain launched air and missile strikes on Houthi-controlled areas of Yemen to stop attacks on ships travelling through the Red Sea.
The US said it struck more than 60 targets in 16 locations of Iran-backed Houthi fighters, including command and control centres, ammunition depots, launchers, production facilities and air defence radar systems.
