Tesla pauses Model Y and Cybertruck production at its Austin Gigafactory
It's no secret that Tesla's Cybertruck sales aren't going well, and even the company's trade-in quotes are absurdly low. Now, Tesla is pausing Cybertruck and Model Y production once again, but this time around the reason is not low demand.
An internal email to employees says Tesla will pause production on June 30 for only a week and use that time for maintenance and production line upgrades. Even though this rattled the stock market briefly, experts say this is a standard practice across the automotive industry.
Additionally, the renewed Model Y and the potential new configurations, one of which has a six-seater layout, are expected to fuel demand and Tesla wants to be ready to ramp up production.
Still, analysts are not very optimistic about Tesla's performance until the end of this year. For instance, Tesla's deliveries would need to jump over 50% in June to meet Wall Street Q2 targets. Also, the company is expected to receive $1.9 billion less cash this year.
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