Tesla stock slumps after a report that Cybertruck and Model Y production is being paused

Tesla’s Austin factory will pause production of its Cybertruck and Model Y vehicles the week of June 30, Business Insider reported. Workers were told the shutdown would be for maintenance on the production lines, to ensure future optimization. 

Shares of the EV company slumped 4% on the news. While such a pause is routine for many automakers, particularly in summer, this is the third time Tesla has done so in the past 12 months: once in May, when workers attended seminars on company morale, and once in December, due to a battery shortage. For this latest pause, employees have the option of either taking paid time off or coming in for voluntary training — and to help with cleaning. 

The production pause comes after Tesla’s first-quarter numbers were dismal. A new Model Y in January was expected to provide a boost, but sales were at their lowest since 2022, a 13% year-over-year decline. Some of the lower sales numbers are attributed to consumer boycotts in the wake of Elon Musk’s controversial role in President Donald Trump’s administration. Last month, Tesla shareholders wrote Musk an open letter demanding that he do his actual job.

The company also issued a massive recall of Cybertrucks in March because their exterior trim panels could easily be dislodged and cause traffic hazards.

Meanwhile, Tesla is preparing to launch its Model Y robotaxis in Austin on June 22, after almost a decade of Musk promising that such a launch was imminent.

Tesla’s second-quarter results are expected in July.