Tesla puts German factory production on hold as Red Sea attacks disrupt supply chains

Tesla says it's temporarily halting most production at its German factory because of attacks in the Red Sea, a vital global shipping corridor.

The electric vehicle maker said in a statement Thursday night that its factory near Berlin, which makes Model Y vehicles and batteries, will pause from Jan. 29 to Feb. 11.

It’s a fresh sign of how the hostilities in the Middle East are disrupting global manufacturing supply chains, with shipping companies reporting that they’re being forced to reroute vessels carrying goods and components on the longer route around the southern tip of Africa. Analysts say the detour adds 10 days or more to the journey.

“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 affecting production in Grünheide," Tesla said. “The significantly longer transport times create a gap in the supply chains.”

The U.S. led airstrikes on Thursday against Yemen's Houthi rebels in response to their attacks on Red Sea shipping,

Tesla said normal operations are expected to resume on 12 February. The factory in Grünheide, southeast of Berlin, is Tesla's first in Europe. It opened in 2022 and employs 11,000 workers.