Tesla Implements Temporary Shutdown at Berlin Facility

The Tesla Gigafactory in Berlin is forced to suspend most of its production for two weeks due to disruptions in the Red Sea.

This reduced activity was initially scheduled from January 29 to February 11, announced the company, citing a shortage of components due to changes in shipping routes to protect against attacks on ships in the Red Sea.

The partial halt in production proves that the crisis in the Red Sea, triggered by Houthi militants who attacked ships in solidarity with the Palestinian group Hamas, has indirectly hit Europe’s largest economy through Tesla. Now, ships are avoiding the Suez Canal, the fastest maritime route connecting Asia to Europe, which accounts for about 12% of global maritime traffic. Military actions jointly carried out by the United Kingdom and the United States on Thursday night to Friday illustrate the urgency of the situation.

The American electric vehicle manufacturer is the first company to implement a production shutdown due to the conflict. Many companies, including Geely, China’s second-largest automaker by sales, and the Swedish furniture company Ikea, have warned their customers of possible delivery delays.

This situation highlights Tesla’s main weakness. The manufacturer relies heavily on China for battery components, which must be transported to Europe via the Red Sea—a disrupted link in the supply chain, causing the entire production chain to collapse like a house of cards.

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