Tesla factories in Germany are restarting production after the disruption caused by the Red Sea attacks

Tesla will resume production at its factory near Berlin on Monday after the shutdown caused by supply chain disruptions caused by the Red Sea attacks, the American electric vehicle maker said.

Tesla car charging station photo

Tesla factories in Germany are restarting production

Houthi attacks on ships in the Red Sea have forced major shipping companies to avoid the Suez Canal, the fastest sea route between Asia and Europe, through which about 12% of the world’s maritime traffic passes. The shipping giants Maersk and Hapag-Lloyd decided to send their ships on longer and more expensive routes, around the Cape of Good Hope. This route adds 10 days to the duration of a trip between Asia and Northern Europe, as well as an extra million dollars in fuel consumption.

On January 29, Tesla stopped the production of vehicles at the factory in Grünheide, Brandenburg, due to a lack of components. 12,500 employees work here.

The company started production at this unit almost two years ago. In the first phase, Tesla wants to produce 10,000 cars per week here, but for now it is at a level of approximately 6,000 units per week.

Separately, Tesla Inc said it was temporarily cutting prices on some Model Y cars in the US until February 29, less than a month after the company cut Model Y prices in Germany.

In January, Tesla warned that in 2024 it expects “a deterioration in the pace of sales growth” as it focuses on producing the next generation of electric vehicles, called “Redwood.”

Vehicle production at Tesla’s German factories stopped at the end of January, when it was announced that production would resume, most likely after February 11. Also, the American manufacturer announced that, at the unit in Grünheide, a suburb of Berlin, production will resume completely on February 12.

Shares of Tesla, the world’s most valuable carmaker, are down about 22% this year.

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