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Tesla’s Factory in Germany Halts Production Over Red Sea Delays

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Tesla has announced that the majority of production at its plant in Germany would be halted for two weeks due to a scarcity of parts caused by shipping delays caused by Houthi rebel attacks in the Red Sea.

The halt was announced just hours before the US and Britain declared early Friday that they had conducted air attacks against the Houthis in response to their persistent threats to shipping in the critical waterway.

“The Red Sea attacks caused delays, resulting in an in supply chains,” Tesla said in a statement.

Production at the facility southeast of Berlin has been paused except for a few sectors. After Tesla reported missing components and halted most production at its German facility due to the attacks on commercial ships in the Red Sea, BMW maintained its supply chain was unaffected.

“The situation in the Red Sea has no impact on the BMW Group’s production, as supplies to our plants are guaranteed. We are in close contact with our logistics partners and we do not expect any failures,” a spokesperson said.

Heavy US and British air strikes struck an airbase, airports, and a military camp in rebel-held Yemen early Friday morning, according to the Houthi-run Al Masirah TV station.

Following the Red Sea attacks, US President Joe Biden labeled the strikes a defensive action and stated that he would not hesitate to order additional military action if necessary.

The Houthis’ spokesman emphasized that this will not and Yemen from supporting Palestine and Gaza.

Since the beginning of Israel’s war on Gaza, Houthis have increased attacks on commercial and military vessels in the Red Sea, claiming to be in solidarity with Palestinians in Gaza.

As a result, several shipping companies have chosen to avoid the channel, which serves as the entry point to the Suez Canal, forcing them to take a significantly longer path between Europe and Asia.

Also Read: Japan Halts Used Cars Trade With Russia

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