Currently reading: Tesla and Volvo pause production as Red Sea attacks delay supply

Car makers rely on the world's busiest shipping lane for Asian-made components, especially for EVs

Tesla and Volvo have suspended production at some of their European factories, due to supply issues arising from the ongoing attacks in the Red Sea.

Ships using the world’s busiest maritime trade route are being targeted by the Houthi militia in response to the ongoing war between Gaza and Israel, international media reports.  

The Houthis, who are backed by Iran and allies of Gaza's Hamas militant group, control a large part of Yemen, which vessels must pass to use the vital and incredibly busy Suez Canal.

As a result, transport firms have halted deliveries...

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