Tesla Inc. Will suspend most car production at its sole European factory for two weeks over supply disruptions caused by unrest in the Red Sea, Reuters reported.
The electric-vehicle maker will partially halt work at the Model Y sport utility vehicle plant near Berlin from Jan. 29 to Feb. 11 as suppliers shift transport routes, Reuters said, citing a statement from the company.
While Tesla is disrupted, a spokesperson for BMW AG said there are no effects on its supply chain with output running as planned. Tesla didn’t respond to calls and emails seeking comment. The carmaker has been trying to stoke demand for its products with a series of price cuts, including this week in China, amid slowing orders for electric vehicles.
There have been a number of attacks on ships in the key Red Sea transit route over the past two months, primarily by Iran-backed Houthi militants, forcing vessels to sail thousands of miles around Africa instead. Overnight Friday, the US and UK launched airstrikes on more than 60 Houthi rebel targets in Yemen, sparking vows of retaliation and a rise in oil prices.
“The considerably longer transportation times are creating a gap in supply chains,” Reuters cited Tesla as saying in a statement.