Tesla plans to halt the manufacture of its Model Y and Cybertruck cars at its Gigafactory in Austin, Texas, from June 30 to July 6. While this may appear as a regular procedure, it comes at a time of decreasing EV demand and mounting worries about Tesla’s delivery figures. Employees have been instructed that they can use their paid time off or take part in optional training and facility maintenance during the downtime. Although brief production pauses are frequent in the auto industry, they are often used for line changes or inventory control. This is the third shutdown at the Texas facility in less than a year.
Why Tesla is Hitting Pause
The company claims that the production halt will allow for “maintenance and improvements to production lines.” Tesla employees were assured that operations would restart the following week, with the enhancements intended to assist future production ramp-ups. However, Tesla did not indicate which production lines would be harmed or enhanced.
A Pattern of Recent Shutdowns
This is not the first pause at Gigafactory Texas. In late May, Tesla turned a long weekend into a full week-long shutdown. During that time, there were voluntary training seminars on workplace culture. Previously, production was halted in December owing to a battery shortage. In April, Tesla reduced Cybertruck output and reallocated staff.
According to accounts, the gaps have become increasingly regular. “Until recently, these kinds of production pauses had been rare at Musk’s automaker,” four factory workers told Business Insider.
Falling Demand and Excess Inventory
Behind the scenes, Tesla is also dealing with a declining market. In Q1 2025, Tesla deliveries fell 13% compared to the same quarter the previous year. By March 2025, fewer than 50,000 Cybertrucks had been delivered, and even those had complications, such as a recall due to a trim panel fault.
Despite the introduction of lower-cost Cybertruck models and the availability of federal tax incentives and rebates, sales remain slow. Tesla has even started renting out additional parking lots to store unsold inventory.
Robotaxi Rollout Looms Ahead
While production slows, Tesla is speeding up its self-driving ambitions. CEO Elon Musk announced that its long-awaited Robotaxi program would begin in Austin on June 22. The first fleet, consisting of 10 to 20 Model Ys, will be offered as autonomous ride-hailing vehicles.
By the end of June, Musk claims, “vehicles will be able to drive themselves from the factory to a customer’s house.” He added, “We are being super paranoid about safety, so the date could shift.”
Tesla’s week-long stop is consistent with larger industry trends. Automakers frequently suspend production during the slower summer months to manage inventory and improve lines. Ford, for example, halted manufacturing of the F-150 Lightning for seven weeks in late 2024. During the epidemic and chip shortages, both GM and Ford suspended operations.
Tesla hasn’t said if this downtime represents broader structural changes or short-term repairs. All eyes are now on its second-quarter delivery report, which is anticipated in July. For the time being, the focus appears to be split between production upgrades and the debut of Tesla’s next big invention, Robotaxi.
