Tesla stops Model Y and Cybertruck production for a week

Tesla plans to pause production of its Model Y and Cybertruck at its Austin, Texas factory starting June 30. The week-long break will allow the company to perform maintenance and upgrades on its production lines. This is the third time in the past year that Tesla has halted work at its Gigafactory Texas, with previous pauses in April and May for different reasons. The upcoming shutdown aligns with the July 4 holiday, a common time for factories to make improvements.

Tesla aims to boost efficiency and output after the break. The company has faced challenges with excess inventory, especially for the Cybertruck, as demand has been lower than expected. Reports show unsold Cybertrucks piling up in various locations across the U.S. Meanwhile, Tesla is preparing to launch its robotaxi service in Austin on June 22, using Model Y vehicles with updated self-driving technology.

However, this plan has sparked concern among some Texas lawmakers, who have asked Tesla to delay the launch due to safety issues with its “Full Self-Driving” system. Local protests have also emerged, with groups opposing the robotaxi rollout and Tesla CEO Elon Musk’s ties to the Trump administration.

The production pause comes as Tesla’s stock dropped nearly 4% after the news. The company is under pressure, with first-quarter deliveries down 13% compared to last year and fewer than 50,000 Cybertrucks delivered by March, according to a recall notice. Tesla hopes the maintenance will help address these challenges and improve future production.