Tesla is reducing its production due to bad conditions in the Red Sea.

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By vexwift.com

Tesla is to close its factory in Berlin for two weeks.

Tesla’s biggest factory in Europe, Gigafactory will be closed for 2 weeks from the end of this month. Due to the suspension of the shipping line in the Red Sea.

“The armed conflicts in the Red Sea and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are also having an impact on production in Gruenheide,” Tesla said in a statement.

Tesla is importing many things for its products from China. After the closure of the Suez Canal, shipping companies are now taking the route of the Cape of Good Hope. Which is taking a lot of time and costs more. Tesla has decided to reduce its production keeping this issue in mind.

Tesla relies heavily on China for battery components, which need to be transported to Europe through the Red Sea, putting production constantly at risk.

“Relying on so many key components from Asia, and specifically China, has been a potential weak spot in any automaker’s supply chain,” said Sam Fiorani, vice president at AutoForecast Solutions.

The company’s statement on Thursday said that production would resume in full on Feb. 12. It did not respond to requests for further detail on which components were missing or how it would restore production by then.

Tesla factory in Berlin

Gigafactory Berlin-Brandenburg (also known as Giga Berlin or Gigafactory is a manufacturing plant for Tesla, Inc. In the municipality of Grünheide in the Brandenburg state of Germany. The campus is located 35 kilometers (20 mi) southeast of central Berlin.

The factory is planned to produce batteries, battery packs, and powertrains for use in Tesla vehicles, and also assemble the Tesla Model Y.

As of October 2023, according to Brandenburg’s Minister of Health Ursula Nonnemacher, Gigafactory Berlin-Brandenburg employs 11,500 people.

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