The “Red Sea crisis” has negative consequences for Tesla in Europe. In fact, the automaker has made it clear that will suspend most production for approximately two weeks V Gigafactory Germany due to shortage of components caused attacks on ships in the Red Sea which led to the lengthening of sea transport routes. There will be a partial shutdown of production from January 29 to February 11. Subsequently, electric vehicle production will return to full capacity. Tesla says in the note:
Armed conflicts in the Red Sea and associated changes in transport routes between Europe and Asia via the Cape of Good Hope also affect production in Grünheide. Significantly longer transport times create a gap in supply chains.
Therefore, due to delays in component deliveries due to attacks by Yemen’s Houthi rebels in the Red Sea, which have disrupted maritime transport routes, Tesla will be forced to halt production for two weeks, with the exception of some sub-sectors. .
Attacks in the Red Sea that affect shipping are causing disruption in many sectors. Returning to Tesla, the automaker said that Gigafactory operations in China, however, will not be affected by this issue. Thus, production will continue as scheduled.
Analysts, however, expect that other automakers too may suffer from the consequences of the conflict in the Red Sea. In fact, Volvo also announced that it will suspend production at its plant in Ghent, Belgium, for three days next week.
Shipping companies said these problems were likely to continue into the future and advised companies to reconsider inventory management.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.