Tesla has announced a second pause in production of its Model Y and Cybertruck vehicles at Gigafactory Texas, extending the production shutdown from June 30 through the first week of July.
This decision comes less than two months after a previous halt, prompting concerns over diminishing demand and escalating inventory levels. Tesla’s move is aimed at conducting maintenance and implementing improvements on the production lines.
The automaker’s latest announcement follows a troubling trend, as Tesla recently reported a 13% drop in vehicle deliveries in the first quarter of 2025 compared to the previous year.
Tesla Extends Shutdown of Model Y and Cybertruck Production at Gigafactory Texas
Early projections for the second quarter indicate an even sharper decline, with expected deliveries down by 19-20%, equating to approximately 355,000-360,000 units. This situation persists despite the launch of cheaper versions of the Cybertruck and efforts to incentivize purchases through discounts and federal tax credits.
Sales of the Cybertruck have plummeted to half of their previous year’s figures, putting additional pressure on the company’s bottom line. As a response to this downturn, Tesla has been forced to rent out empty parking lots across the U.S. as overflow storage for its increasing inventory.
Reports indicate that production capacity was already reduced to 60% at many factories in 2024 due to lower demand, raising questions about the company’s operational efficiency.
With the Fourth of July holiday around the corner, this extended shutdown raises concerns about Tesla’s ability to maintain market momentum and manage consumer expectations.
The repeated pauses in production of its flagship Model Y—and the associated design updates—underscore a growing uncertainty within the company about meeting its projected sales targets in a rapidly evolving electric vehicle market.
Author: Chema Carvajal Sarabia
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