Tesla Model Y and Cybertruck production halted

Tesla is adjusting production at its Austin, Texas, factory after a change in demand for its popular Model Y crossover.

According to information revealed by employees, the company has asked workers on the Model Y assembly line to take a week off or report for cleaning and training duties.

A similar directive was given to workers on the Cybertruck assembly line, who were told to "rest" during the last week of May, the Telegraph reports.

The Model Y is Tesla's best-selling car, and these "production adjustments" are concerning.

Employees have stated that the break is longer than usual, some sources claim that there has been a reduction in overtime, while others claim that management has banned overtime.

This information comes after reports of inconsistent work schedules at the Austin plant since February, where some workers claimed they were repeatedly sent home early.

This isn't the first production adjustment in Austin. Last year, workers on the Cybertruck production line were told to stay home for several days.

This happened despite the fact that the Cybertruck outsold all other electric pickup trucks on sale in the US.

Demand for the controversial vehicle has apparently dropped significantly after the initial buzz.

Tesla CEO Elon Musk previously predicted annual orders of 250,000 Cybertrucks, but current sales figures paint a different picture.

Later, expectations were tempered and the goal was set at 120,000 units, but even that seems too ambitious.

Cox Automotive data shows that Tesla sold 38,965 Cybertrucks last year, while sales in the first quarter of this year amounted to 6,406 units, a significant drop compared to the third and fourth quarters of 2024, during which sales were double that number.

The fact that the Model Y, Tesla's main source of revenue, is undergoing a production pause indicates serious demand problems.

Even with the refreshed Model Y now in production, the company is facing difficulties.

Last year, Tesla recorded a 13 percent drop in global deliveries, its worst result in two years.

In the US, sales fell by 5.6 percent, while the overall automotive industry recorded a sales increase of 7.3 percent. /Telegraph/