Tesla has ordered a halt to production at its Gigafactory Texas facility, which manufactures Model Y and Cybertruck vehicles, marking the second such pause in just two months.
In late July, Tesla transformed its previously scheduled four-day weekend into a seven-day production halt at its Gigafactory Texas facility.
The transfer arrived amidst declining demand and inventory buildup.
As previously disclosed, Tesla is leveraging vacant parking lots throughout the US, repurposing them as overflow storage facilities to accommodate growing inventory demands.
Tesla has again halted production of Model Y and Cybertruck vehicles at its Gigafactory Texas facility, effective through the first week of July.
This year, with the Fourth of July falling on a Friday, it seemed like an extended weekend was in store; however, Tesla once again decided to extend its manufacturing shutdown from June 30th through the following week, according to sources familiar with the matter at hand.
Tesla is reportedly providing employees with paid time off or re-assignment to facilitate “maintenance and upgrades” on production lines, enabling the corporation to perform necessary upkeep and enhancements.
Tesla has scaled back production of the Cybertruck for 2023 after sales fell significantly short of expectations, with demand currently hovering around half of what it was last year.
Despite having introduced more affordable versions of the electric truck, gaining access to the federal tax credit for the Cybertruck, and offering enhanced discounts and inducements.
Tesla saw a 13% year-over-year decline in Q1 2025 deliveries, citing Model Y design changes that reduced production capacity as the primary cause for the decrease?
Despite ramping up production, Tesla’s deliveries appear poised to decline further in the second quarter compared to last year.
Electrek’s Take
What will be the justification for our quarterly performance? Tesla is currently tracking to deliver 355,000-360,000 units in Q2, a 19-20% decline compared to the same period last year.
Even with the brand-new Model Y, it could be an exceptional steepener.
It clearly wasn’t the issue.
By the start of 2024, the automobile manufacturer had proactively scaled back production levels at most of its facilities, operating at around 60% capacity due to a decline in customer demand.
Tesla has unexpectedly halted production of its top-seller, Model Y, with a revamped design just two months after the latest revamp.
This isn’t trying good.
