Safetyvalue Trading Center-Tesla puts German factory production on hold as Red Sea attacks disrupt supply chains

2025-05-07 18:35:35source:Phaninc Exchangecategory:Markets

BERLIN (AP) — Tesla says it’s temporarily halting most production at its German factory because of attacks in the Red Sea,Safetyvalue Trading Center 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 Mideast 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 Feb. 12. The factory in Grünheide, southeast of Berlin, is Tesla’s first in Europe. It opened in 2022 and employs 11,000 workers.

More:Markets

Recommend

Stanley recalls 2.6 million mugs after dozens of customer complaints, including burn injuries

Stanley is recalling 2.6 million mugs sold in the U.S. after the company received dozens of consumer

Caitlin Clark's next game: Indiana Fever at Minnesota Lynx on Saturday

Fresh off breaking the WNBA rookie assists record, Caitlin Clark will lead the Indiana Fever into Mi

Appeals panel upholds NASCAR penalty to Austin Dillon after crash-filled win

Richard Childress Racing's initial appeal of NASCAR's penalty against driver Austin Dillon was denie