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Tesla Temporarily Shuts Down Its Giga Berlin Factory

Giga Berlin 8 photos
Photo: Tesla
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Tesla is forced to shut down the Giga Berlin factory temporarily. The carmaker is the victim of the lack of components due to shifts in transport routes caused by the attacks on vessels in the Red Sea. Avoiding the area would add ten days more to the shipping and would raise the fuel bill by $1 million.
Production in Germany has to take a break between January 29 and February 11 due to the transportation disruptions arising in the Red Sea. Therefore, shipping companies must reorganize their routes to avoid going through the Red Sea and the Suez Canal.

Re-routing ships means sending them southward to circle the entire African continent, which would be a much longer route, amounting to approximately 15,000 miles. The extra distance would add around ten days for the average ship departing Asia to the European shores. Furthermore, the extra distance would add an extra $1 million to the fuel bill.

That is the reason why Tesla, as well as other manufacturers, suffer from disruptions in the supply of car parts. Without the necessary components to build the cars, the factory has to shut down most production for approximately two weeks until the necessary parts arrive in the inventory.

The Iranian-backed Houthi militants unleash attacks on vessels sailing through the Red Sea, as a sign of solidarity with the Palestinian Islamist group Hamas fighting Israel in Gaza, Reuters reports.

The Read Sea features several major shipping lanes, which connect Asia to the Mediterranean through the Suez Canal in Egypt. Approximately an eighth of global trade and a tired of global container traffic goes through the canal.

The Giga factory is Tesla's only factory in Europe. Therefore, deliveries on the old continent will also suffer in the future.

It's only been two weeks since Tesla uploaded a video on former Twitter/current X to praise the team at the Giga Berlin. 2023 was the first full year of production for the Tesla factory in Germany.

The center is located some 20 miles (35 kilometers) southeast of Berlin. It is linked to the area's infrastructure through its own free train service and offers various other services exclusively to the employees. There are currently 11,500 people working there.

That is where Tesla built its most advanced paint shop, which does unique paintworks such as the Quicksilver and Midnight Cherry Red for the Model Y crossover. These are two of the most daring shades in the carmaker's current lineup.

The Model Y is the only car built by Tesla in Germany. The company has confirmed plans to build its upcoming entry-level model there. Yet unmade, the car is expected to start at around $25,000 before incentives. Before that happens, Tesla will have to sort out the supply issues.
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