Tesla to Idle German Gigafactory Due to Red Sea Shipping Delays


tesla to idle german gigafactory due to red sea shipping delays

We’ve been hearing about attacks on shipments on the Red Sea for a while now, but the violence has probably felt like an isolated problem to many people. Shipping delays and logistics challenges have real consequences, though, and Tesla is finding that out the hard way.

The electric automaker is idling its Berlin Gigafactory for a couple of weeks as it grapples with parts shortages from the Red Sea attacks. It plans to shutter the factory at the end of the month to give extra time for parts to show up. Unfortunately for Tesla and others, the disruptions are unlikely to stop anytime soon and may accelerate as the U.S. and others intervene.

Tesla just rolled out the new Model 3 and Cybertruck here in the States, and the automaker has been building the updated sedan for a while in Europe, so the shipping delays couldn’t have come at a worse time. That said, the company operates factories around the world, so

Houthis in Yemen have declared a blockade of a strait leading into the Red Sea in response to Israel’s attack on Gaza. The shipping route is a significant thoroughfare that prevents thousands of miles of additional travel to get around Africa. The U.S. and others have launched retaliatory strikes against the Houthis, but they’re unlikely to stop the attacks.

[Image: Tobias Arhelger via Shutterstock]

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