Tesla halts production in Berlin

Tesla has halted much of its production at its Gigafactory Berlin-Brandenburg in Grünheide. The reason is a shortage of car parts due to ongoing problems in the Red Sea region. The production shutdown at the carmaker will last for two weeks.

Production has been halted at the German Tesla factory in response to delayed delivery of essential parts caused by Houthi attacks on cargo ships in the Red Sea. The rebel attacks on this key trade route are a show of support for Hamas and the Palestinians.

Because of the violence, shipping companies like Maersk, MSC, Hapag-Lloyd, CMA CGM, ZIM and ONE are currently avoiding the Red Sea. Instead, they are sailing around South Africa. This means much longer sailing times for cargo ships, so companies like Tesla have to wait longer for their deliveries.

Tesla confirms that significantly longer transport times have created a gap in the supply chain, affecting the production process at Grünheide. The factory can make 375,000 cars a year, destined for the European market.

Threat to global supply chains

Incidentally, in an interview with the Financial Times, Maersk boss Vincent Clerc warned about the ongoing turmoil in the Red Sea region. “If the problem is not solved, ships will soon be in the wrong places, and that will pose a threat to logistics and global supply chains,” Clerc said.