Tesla Halts Austin Factory Amid Robotaxi, Sales Woes

Tesla will temporarily halt production of its Cybertruck and updated Model Y at the Austin, Texas Gigafactory for one week starting June 30, citing maintenance and improvements. This marks the third such stoppage in a year, with analysts attributing sales declines to growing competition and CEO Elon Musk's controversial political stance. The pause aligns with the anticipated, but contentious, launch of Tesla's robotaxi service in Austin, which has drawn protests and safety concerns. Tesla's stock has dropped in response to the announcement, reflecting investor worries about overpromising and ongoing demand challenges. The company continues to grapple with falling deliveries, excess inventory, and hopes the maintenance will help enable the ramp-up of a more affordable EV. These frequent shutdowns underscore broader operational issues and questions about Tesla's ability to manage inventory and sustain demand.