Tesla’s German factory suspends production over Red Sea delays

Electric car manufacturer Tesla has announced it is suspending for two weeks the bulk of production at its factory in Germany, citing a shortage of parts due to shipping delays caused by Houthi rebel attacks in the Red Sea.

The suspension was disclosed just hours before the United States and Britain announced early Friday they had carried out air strikes against Houthis over their repeated threats to vessels in the key waterway.

The Red Sea attacks had led to delays that created a "gap in the supply chains", resulting in production at the facility southeast of Berlin being suspended "with the exception of a few sectors", Tesla said in a statement.

"From February 12, production will resume in full," it added.

BMW said its supply chain was not affected by the attacks on merchant vessels in the Red Sea after Tesla reported it was missing components and stopping most production at its German plant because of the attacks.

"The situation in the Red Sea has no impact on the BMW Group's production, as supplies to our plants are guaranteed. We are in close contact with our logistics partners and we do not expect any failures," a spokesperson said.

US, British air strikes

Early Friday morning, heavy US and British air strikes targeted an airbase, airports and a military camp in rebel-held Yemen, the Houthi's Al Masirah TV station said.

US President Joe Biden called the strikes a "defensive action" after the Red Sea attacks and said he "will not hesitate" to order further military action if needed.

Houthis' spokesman stressed that this will not “deter Yemen from supporting Palestine and Gaza.”

Since the start of Israel's war on Gaza, Houthis have stepped up attacks on commercial and military vessels in the Red Sea in what they say is solidarity with Palestinians in Gaza.

As a result, some shipping firms have opted to avoid the waterway, the gateway to the Suez Canal, forcing them to take a much longer route between Europe and Asia.