Tesla Plans to Shut Down Model Y and Cybertuck Production over the Week of July 4

Tesla Plans to Shut Down Model Y and Cybertuck Production over the Week of July 4$Tesla Motors(TSLA)$  

Tesla told staff it plans to pause Cybertruck and Model Y production during the July 4 week.

The pause would enable the automaker to perform maintenance on production lines, Tesla told staff.

All eyes are on the company's planned Robotaxi launch this month in Austin.

Tesla plans to pause production on Cybertruck and Model Y lines for a week at its Austin factory, Business Insider has learned. It would be at least the third such shutdown in a year.

In a meeting earlier this month with workers, the company said the shutdown would begin the week of June 30, and production would resume the following week, according to a person familiar with the matter. During the pause, employees can use paid time off or come in for voluntary training and cleaning.

The pause would enable the automaker to perform maintenance on production lines, the company told workers.

Tesla told staff the improvements would help ramp up production, according to the person. It did not specify which lines could see increased output.

In the lead up to the planned shutdown, the carmaker has also been preparing for a Robotaxi launch in Austin. CEO Elon Musk has said that the first rides will be offered in a Model Y. The company plans to launch with between 10 to 20 of the vehicles, he said.

Tesla did not respond to a request for comment about the planned shutdown.

Tesla has paused production at the Austin facility at least twice over the past 12 months.

During a production pause on Cybertruck and Model Y lines in late May, the company held voluntary training that included seminars on improving the work culture at the factory.

Tesla also paused production of the Cybertruck for three days in December. At the time, workers said they were told it was due to a battery supply issue. In April, the automaker reduced production of the electric pickup truck and moved some workers off the line.

It's common for some automakers to shut production lines down for weeks on end, especially during holiday periods or summer months, when auto sales typically slow down.

The production pauses allow companies to conduct routine maintenance and update lines; they can also give companies time to address inventory surpluses or parts shortages.

In the fall of 2024, Ford suspended production of its F-150 Lightning for seven weeks. During the semiconductor shortages in 2021, both Ford and GM paused production at some of their plants.

Until recently, these kinds of production pauses had been rare at Musk's automaker, four workers told Business Insider.

Tesla is expected to release its second-quarter delivery numbers in July. During its first quarter, Tesla reported a 13% drop year-over-year. As of March 20, Tesla has delivered fewer than 50,000 Cybertrucks, according to a voluntary recall notice.

Tesla released a refreshed version of its Model Y, the company's best-selling model, in January.

For now, all eyes are on the company's upcoming Robotaxi launch. Musk said on June 10 that the company "tentatively" planned to begin offering the self-driving service on June 22 in Austin.

"We are being super paranoid about safety, so the date could shift," Musk said in a post on X.

By June 28, the vehicles would be able to drive themselves from the factory to a customer house, he added.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Click to View

Share to

Comments

a4xrbj1

44 minutes ago

a4xrbj1

Haha, maintenance my ass. They can't sell their carpals even in the US anymore. Just wait until delivery numbers for Q2 will be out with a new low vs already very shitty Q1 numbers. No one wants to buy the Cyberflop and the facelift Model Y isn't selling well, already discount necessary to sell it.