Tesla (TSLA) confirmed it will resume operations at Giga Berlin following production suspensions due to continued attacks by the Houthi militia on parts suppliers that use the Red Sea shipping route.
According to German media outlet Oldenburger Onlinezeitung (via Electrek), Giga Berlin factory manager Andre Thierryg said production would resume on February 12 after a shutdown that began at the end of January.
“The supply chain is intact again,” Thierryg said, adding that Tesla “has the necessary security that all necessary production parts are available in sufficient quantities to fully restart.” he pointed out.
Tesla said last month that it would have to reroute supplier parts from Asia from the Red Sea and Suez Canal to around South Africa's Cape of Good Hope, leading to longer lead times and gaps in the supply chain.
Tesla's Giga Berlin exclusively manufactures the Model Y SUV for Europe and other selected markets. Although the factory's productivity is not as high as Tesla's factories in Shanghai or Fremont, California, Produced 5,000 Model Ys in one week in May Thierryg said Giga Berlin reached 6,000 units per week before the shutdown. “Yes, we have surpassed this milestone,” Thierryg told Oldenburger Onlinezeitung.
Thierrig said the temporary production stoppage will not set back Tesla's chances of reaching 6,000 cars per week again as factories resume operations. According to Tesla, Giga Berlin's annual installed capacity is 375,000 vehicles, compared to Giga Shanghai's annual capacity of more than 950,000 vehicles.
A two- to three-week shutdown means about 10,000 to 15,000 Model Y vehicles could be affected, compared to the 1.846 million vehicles Tesla produced globally last year. Considering that, it's not that serious.
Tesla is not the only automaker affected by the Red Sea transportation disruption. Swedish carmaker Volvo also announced in January that it would suspend some production at its plant in Belgium due to delays in getting gearboxes from suppliers, forcing them to be shipped over long distances.
While the restart of production at Giga Berlin is good news, Tesla stock has fallen this year on concerns about Tesla's production outlook due to signs of slowing global EV demand.
“Vehicle volume growth will be significantly lower than the growth rate achieved in 2023 as our teams work to launch next-generation vehicles at Gigafactory Texas,” Tesla said in its latest earnings call late last month. “There is a possibility,” he said, hinting at the future outlook. This fell short of the 2.19 million people expected to be on the streets in 2024, which would have been an increase of 21% from 2023.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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