Tesla Austin Factory to Halt Cybertruck, Model Y Production for a Week

Tesla Inc. is pausing production of Cybertruck and Model Y vehicles at its Austin factory for a week later this month as sales continue to slide.

The Texas-based automaker reportedly told its 21,000 Austin employees it will shut down production lines for the two vehicles beginning June 30, with the company set to resume operations a week later. Employees can use paid time off or report for voluntary training and cleaning.

The meeting and shutdown was first reported by Business Insider, which said employees were told production is being paused to perform maintenance.

RELATED: Tesla Model Y robotaxis hit Austin streets for testing as Musk sets 'tentative' launch date

It will be the third production shutdown by the company in the past year and comes as Tesla sales continue to decline, leaving rows of unsold vehicles around its factories and elsewhere. After falling a record 13% through the first three months of this year, sales fell another 16% in April, according to data from S&P Global Mobility cited Wednesday by trade publication Automotive News.

The sales slowdown and production pause overshadows Tesla’s long-planned rollout its first autonomous robotaxis in Austin. After starting supervised testing on Austin streets a few weeks ago, CEO Elon Musk confirmed via a post on X that Tesla set a launch date “tentatively” for Sunday. Tesla’s Model Y vehicle, the same one that production lines at the Austin factory currently manufacture, is the first model being used for the company’s robotaxi.

“We are being super paranoid about safety, so the date could shift,” Musk said.

It is not uncommon for automakers to pause production for weeks at a time, especially as auto sales slow during holiday periods or summer months. The production pauses allow for maintenance, line updates and inventory stocking.

Tesla last paused production on Cybertruck and Model Y lines in late May, with the company holding trainings on work culture. Earlier, it paused Cybertruck production in December, reportedly due to battery supply issues. Production of the vehicle was reduced in April but not entirely shut down.

Tesla’s had a rough 2025, despite the release of the refreshed version of top-selling Model Y in January and Musk’s promise of the robotaxi service launch in Austin and other cities.

The big sales declines have been blamed on multiple factors, including increasing competition in the electric vehicle market and customer boredom with Tesla’s aging lineup. But analysts have said a key factor also has been growing international protest against the brand because of Musk’s affiliation with the Trump administration and his boisterous leadership of its budget-cutting Department of Government Efficiency.

Tesla showrooms and vehicle owners have been hit by protests, vandalism and threats of violence. One study found that between January and April, 46% of Tesla owners reported that their car has been vandalized, with one-third considering getting rid of their vehicles within the year.

Though Musk recently stepped back from his role as a special adviser to Trump, a public feud with Trump over the budget bill has since tarnished his reputation with many Republicans, as well.

Tesla stock plunged Tuesday on news of the production pause, with shares falling nearly 4%. They rebounded Wednesday, closing up less than 2%. The stock has declined about 22% so far this year.