Red Sea problems halt German Tesla production –

Red Sea problems halt German Tesla production –

Tesla halts most car production in Germany for two weeks from the end of January. The reason is the lack of ingredients as a result of problems in the Red Sea.

Production stopped at the factory in Gruenheide, near Berlin, between January 29 and February 11.

The decision shows that the crisis in the Red Sea, where Iran-backed Houthi rebels are attacking ships in solidarity with Hamas' war against Israel in the Gaza Strip, has affected Europe's largest economy.

– Tesla said in a statement that the armed conflict in the Red Sea and the subsequent change in transport between Europe and Asia via the Cape of Good Hope also affects production at Gruenheide.

Other large companies, such as Chinese automaker Geely and Swedish IKEA, have also warned that there will be delays in deliveries.

The weak link of the automobile industry

In the statement, Tesla says that the much longer transportation time leads to gaps in the supply chain. The same is likely to affect other car manufacturers.

says Sam Fiorani, president of analysis firm AutoForecast Solutions Reuters It has long been a potential weakness for all car manufacturers to the point where they rely heavily on key components coming from Asia. Tesla imports battery components from China to its factory in Germany. It poses a constant danger to them, Fiorani comments.

He doubts that Tesla is the only automaker affected by the situation in the Red Sea, and believes that it is the first manufacturer to be affected.

It is not clear when the Red Sea will be safe again

It is expected that there will be no transportation through the Red Sea in the foreseeable future. CEO Vincent Clerc at Mærsk He tells the Financial Times It may take several months before it is relevant.

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He described the attacks that forced shipping around South Africa as brutal and tragic.

– It is not clear to us whether it is a matter of restoring safe passage through the Red Sea within days, weeks or months. He told the newspaper that it would likely have serious consequences for global growth.

Jabori Obasanjo

Jabori Obasanjo

"Coffee trailblazer. Certified pop culture lover. Infuriatingly humble gamer."

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