Tesla will stop most car production at its European factory for two weeks.
This pause will start on January 29 and run until February 11 due to supply chain problems caused by the Red Sea conflict.
The company’s Berlin plant, which makes the Model Y SUV, faces disruptions as suppliers change their transport routes.
While Tesla adjusts, BMW reports no impact on its production.
Tesla is working to increase demand for its cars, cutting prices in China due to slower electric vehicle sales.
Attacks in the Red Sea, mainly by Houthi militants, have forced ships to detour around Africa.
This has led to longer transit times and supply chain gaps.
Recently, the US and UK responded with airstrikes in Yemen, escalating tensions and affecting oil prices.
Other companies are also adapting to these challenges. IKEA expects delays in product availability.
KONE, a Finnish elevator company, is seeking alternative shipping methods. Lidl’s Tailwind Shipping Lines now avoids the Red Sea and Mosaic.
A US fertilizer company rerouted shipments. Next, a British clothing retailer is planning early orders and air freight to manage sales.
Sainsbury’s is coordinating product arrivals from Asia. TSMC, a major chipmaker, doesn’t see a significant impact.
Volkswagen acknowledges longer delivery times but has no issues yet. Volvo Car is assessing the situation, while Whirlpool reports no current impact.
Yara, a Norwegian fertilizer maker, experiences only mild effects.
These global trade adjustments show the widespread impact of disruptions in crucial shipping routes like the Red Sea.