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Today's Paper | May 09, 2026

Published 12 Jan, 2024 09:17am

Tesla’s German factory suspends production over Red Sea delays

Electric car manufacturer Tesla has announced it is suspending for two weeks the bulk of production at its factory in Germany, citing a shortage of parts due to shipping delays caused by Houthi rebel attacks in the Red Sea, AFP reports.

The suspension was disclosed just hours before the United States and Britain announced earlier today they had carried out air strikes against the Iran-backed rebels over their repeated threats to vessels in the key waterway.

The Red Sea attacks had led to delays that created a “gap in the supply chains”, resulting in production at the facility southeast of Berlin being suspended “with the exception of a few sectors”, Tesla said in a statement sent to AFP. “From February 12, production will resume in full,” it added.

Early Friday morning, heavy US and British air strikes targeted an airbase, airports and a military camp in rebel-held Yemen, the Houthi’s Al-Masirah TV station said, with AFP correspondents and witnesses also reporting hearing bombardments.

The Tesla factory outside Berlin opened in 2022 and employs around 11,500 people, turning out about 250,000 vehicles a year, according to the company, which plans to expand the facility to double production.

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