Michelle ThompsonAttacks by Yemen’s Houthi rebel group on commercial ships in the Red Sea cause logistics firms to choose alternate routes, raising shipping fees and delaying supplies.
Tesla announced it will temporarily cease manufacturing at its German facility for two weeks owing to supply chain difficulties caused by 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,” the electric car maker stated in a statement on Thursday.
The company intends to resume production on February 12, according to the statement.
The attacks on commercial ships in the Red Sea by Yemen’s Houthi rebel group pushed logistics firms to use alternate routes, boosting shipping fees and delaying delivery.
Nearly 12% of global seaborne commerce flow passes through the Red Sea route.
The Houthis have carried out 27 attacks in the Red Sea since November 19, according to the US military.
The declaration coincided with US and UK airstrikes on several Houthi targets inside Yemen late Thursday, which US President Joe Biden said as “in direct response to unprecedented Houthi attacks against international maritime vessels.”
