Tesla to halt production in Germany on supply chain disruption due to Red Sea attacks

By Tuba Ongun

Electric carmaker Tesla said it will temporarily halt production at its facility in Germany for two weeks, citing supply chain disruptions due to the Red Sea shipping attacks.

"Due to a lack of components, we are therefore forced to suspend vehicle production at GigaBerlin for the period between Jan. 29 and Feb. 11, with the exception of a few subsections," Tesla said in a statement on Thursday.

It plans to resume production on Feb. 12, the statement added.

Yemen’s Houthi rebel group's attacks on commercial vessels in the Red Sea forced logistics firms to use alternative routes, raising shipping rates and delaying deliveries.

The Red Sea route accounts for nearly 12% of global seaborne trade traffic.

The Houthis have carried out 27 attacks in the Red Sea since Nov. 19, the US military said earlier Thursday.

The announcement came around the time of US and UK airstrikes late Thursday on multiple Houthi targets inside Yemen in what US President Joe Biden said was "in direct response to unprecedented Houthi attacks against international maritime vessels."