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Tesla has to stop production in Grünheide due to the location in the Red Sea

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Tesla has to stop production in Grünheide due to the location in the Red Sea

Economy Two weeks outage

Tesla has to stop production in Grünheide due to the location in the Red Sea

Status: 11.01.2024 | Reading time: 2 minutes

Around 11,500 employees work in the Tesla factory

Source: Patrick Pleul/dpa

The electric car manufacturer Tesla has to stop production in Brandenburg for two weeks due to attacks by Yemen’s Houthi rebels in the Red Sea. A gap has arisen in the supply chains.

Tesla has to interrupt a large part of its vehicle production at the Grünheide plant in Brandenburg for two weeks. The reason was the lack of components due to the security situation in the Red Sea, the electric car manufacturer said in a statement to the Reuters news agency late on Thursday evening.

The significantly longer transport times created a gap in the supply chains. They are therefore forced to suspend production at the Gigafactory between January 29th and February 11th, with the exception of a few areas. “Production will resume in full from February 12th.” Around 11,500 employees work in the factory.

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Houthi rebel attacks

Ikea also warns of delays

“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,” the statement sent to Reuters continued. Tesla is the first company to announce a production gap due to the conflict. However, several companies – including the Chinese car manufacturer Geely and the furniture store Ikea – have warned of delays in deliveries.

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In the Red Sea, the Houthi rebels are attacking ships from Yemen. They have declared their solidarity with the radical Islamic Hamas militia in the Gaza war and repeatedly attack ships with alleged Israeli connections.

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Although around ten percent of all world trade passes through the Red Sea because it is the shortest sea route between Asia and Europe, many ships now avoid the Suez Canal. Instead, they take a detour around South Africa, resulting in higher costs and longer transport times.

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