TSLA - Tesla shutters German factory as Red Sea conflict disrupts supply chain -report
2024-01-11 17:01:32 ET
- Tesla's ( NASDAQ: TSLA ) Berlin factory is suspending production for two weeks as the conflict in the Red Sea slows deliveries of necessary components.
- Attacks on commercial vessels in the Red Sea by Houthi rebels from Yemen has persuaded most major shipping companies like Hapag-Lloyd ( OTCPK:HPGLY ) and Maersk ( OTCPK:AMKBY ) to reroute ships away from the Suez Canal route to go around South Africa's Cape of Good Hope. The modified course adds 10 additional days to a journey from Rotterdam to Singapore.
- "The considerably longer transportation times are creating a gap in supply chains," the carmaker said in a statement cited by Reuters .
- The German economic institute IfW Kiel estimates that imports and exports in and out of Germany in December were down 1.8% and 1.9%, respectively due to shipping delays in the Red Sea.
- The Gruenheide factory in German will be shuttered Jan. 29 to Feb. 11.
- Tesla closed 2.9% lower on Thursday.
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Tesla shutters German factory as Red Sea conflict disrupts supply chain -report