Production halted for two weeks at another Tesla factory

US-based electric vehicle manufacturer Tesla has announced that it has decided to suspend production at its factory in Berlin for two weeks, as attacks on ships in the Red Sea have impacted its supply chain.

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In a statement from Tesla, it was noted that armed conflicts in the Red Sea and the resulting shifts in shipping routes between Europe and Asia via the Cape of Good Hope have impacted the supply chain, which in turn has affected production in Germany due to delays.

SUSPENDED UNTIL THE SECOND WEEK OF FEBRUARY

Pointing out that extended shipping times have created gaps in supply chains, the statement said, "Due to missing components, we are forced to suspend vehicle production at the Gigafactory in Berlin-Brandenburg between January 29 and February 11, with the exception of a few areas. Production will fully resume from February 12."

The Houthis in Yemen announced their support for Hamas after Hamas launched attacks on Israel on October 7, 2023, and have carried out numerous attacks on commercial ships in the Red Sea using drones and missiles. As a result, commercial ships began changing their routes, opting to use the Suez Canal instead of the Red Sea, which takes longer for transport.

While the US and the UK struck Houthi targets in Yemen, American and British warplanes carried out airstrikes overnight on several locations in the Yemeni cities of Sanaa, Hodeidah, and Taiz.

US President Joe Biden stated in a written announcement that Australia, Bahrain, Canada, and the Netherlands also supported the attack.

Reports in the US media stated that US and UK military forces struck at least 12 Houthi targets, and that the attacks were carried out with warplanes and Tomahawk missiles.

Following the Houthis' actions against commercial ships in response to Israel's attacks on Gaza, numerous shipping companies had decided to halt their voyages in the Red Sea.

Houthi attacks also endanger passage through the Suez Canal, which connects the Mediterranean to the Red Sea, offers the shortest route between Europe and Asia, and accounts for approximately 12 percent of global trade.

The attacks on commercial ships in the Red Sea and the decisions taken by companies one after another are raising concerns that a new "supply chain crisis" may begin in the global economy.