Tesla will stop production at its Giga Berlin plant (the largest in Europe) for a period of two weeks between the end of January and the beginning of February . This decision is due to a shortage of components, as attacks in the Red Sea led by Houthi militants in Yemen have caused tensions in supply chains.
Constant attacks on ships in the Red Sea are causing disruption to maritime trade through the Suez Canal and some ships have chosen to divert to a much longer route.
“Significantly longer transportation times are creating a gap in supply chains. Therefore, due to a lack of components, we are forced to suspend vehicle production at the Berlin-Brandenburg Gigafactory.“Tesla said in a statement last Friday.
Tesla will stop production. Will it affect the prices of electric vehicles?
Production of electric vehicles at Tesla’s Berlin factory will be interrupted from January 29 to February 12 .
The supply chain faces its biggest challenge since the start of the COVID-19 pandemic, which could have implications for the global economic recovery. Rising freight and oil costs, along with the threat of inflation, are raising concerns.
The Suez Canal, which accounts for approximately 12% of global container traffic, is affected. Although there is an alternative route via the Cape of Good Hope in southern Africa, transport times and costs have increased significantly.
Reliance on key components from Asia, especially China, has become a potential weak point in the supply chain for automakers.
Tesla, for example, relies on China for battery components that must be transported to Europe across the Red Sea, constantly putting production at risk. Other European automakers, such as VW and Renault, are closely monitoring supply and coordinating with carriers, although they have not yet indicated significant threats to production due to supply chain delays.
Volvo Car, majority owned by China’s Geely, has also announced it will halt production at its Ghent, Belgium, plant for three days next week due to delays in the delivery of gearboxes. Some oil tanker operators have stopped crossing the Red Sea following US and UK airstrikes against Yemen’s Houthis, as regional conflict intensifies since the war in Gaza. In addition to logistical challenges in trade, lower water levels due to drought have reduced crossings of the Panama Canal, another key maritime trade route.
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Source: worldenergytrade.com
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