Tesla Halts Production Amid Red Sea Crisis and Labor Strikes

The company faces a significant drop in market valuation and plummeting sales in Germany.

Tesla has halted production at its gigafactory in Germany due to a lack of parts caused by the Red Sea shipping crisis.
Attacks against cargo ships by Yemen-based Houthi Rebels have forced many vessels to reroute around the southern tip of Africa, causing weeks-long delays.
Tesla has lost more than $94bn in market valuation in just the first two weeks of 2024 due to a barrage of negative news.
Workers at Tesla repair shops in Sweden have gone on strike, seeking better wages and benefits, with the strike spreading to Norway, Finland, and Denmark.
Sales of Tesla cars in Germany plunged 77% in December year-on-year.