Tesla will once again suspend production at its Texas factory in the United States starting at the end of this month, with a scheduled return only after the July 4 holiday.
The measure comes amid a decline in demand and an excess of vehicles in inventory, forcing the automaker to rent parking lots in the US to store unsold models. The production halt mainly affects the Model Y and the Cybertruck, and has been identified as one of the factors that contributed to a 4% drop in the company’s stock this week.
Tesla’s sales fell by 13% in Q1 2025 compared to the same period last year. The company attributes the decline to design changes in the Model Y, which will lead to reduced production. The Gigafactory Texas, covering nearly one million square meters of built area, will experience its third shutdown in less than a year. Despite this, the company states that the downtime will be used for maintenance, production line improvements, and employee training, as well as granting paid leave to its workers.
Meanwhile, Elon Musk is facing protests in Austin against Tesla’s pilot robotaxi service, scheduled to launch on June 22. Local groups claim that the Full Self-Driving (FSD) system used in the autonomous vehicles has safety flaws.
Even with incentives from the US government for electric vehicles, such as a $7,500 tax credit, the Cybertruck’s commercial performance is still below expectations.
Source: Olhar Digital | Photo: Instagram @teslamotors | This content was created with the help of AI and reviewed by the editorial team
