Tesla’s shares fell nearly 4% on June 17, 2025 following news of a temporary production halt for Cybertruck and Model Y vehicles at its Austin, Texas facility.

The one-week shutdown, scheduled to begin on June 30, 2025 is for maintenance on production lines.

Tesla has not commented on the reported stoppage.

Tesla is also preparing to launch its Model Y robotaxi, featuring an updated version of its “Full Self-Driving” (FSD) technology, in Austin on June 22, 2025.

However, the FSD technology has faced criticism from public safety groups.

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🔗 Source: CNBC

🧠 Food for thought

1️⃣ Tesla’s production pauses follow established pattern of manufacturing challenges

The reported production stoppage fits into Tesla’s history of manufacturing struggles dating back to its “production hell” phase with the Model 3.

In 2018, Tesla’s Gigafactory faced severe operational issues including malfunctioning machinery and software problems that at one point reduced Model 3 production to just three cars per day, far below the 5,000 weekly target 1.

Previous production pushes have led Tesla to make controversial decisions to meet targets, including eliminating industry-standard brake tests and “factory gating” vehicles that required repairs before delivery 2.

These past challenges provide important context for understanding the current Austin facility shutdown, which is now the third such stoppage in a year, suggesting potential ongoing manufacturing optimization issues.

The timing of this production pause, just before a major robotaxi launch, raises questions about Tesla’s ability to balance production volume, quality control, and new technology introduction.

2️⃣ Robotaxi launch faces substantial safety and regulatory hurdles

The protests against Tesla’s robotaxi launch highlight growing skepticism about self-driving technology’s readiness for public deployment.

Research shows that while autonomous systems perform better than humans in some scenarios, they’re nearly twice as likely to crash while turning and five times more likely to crash in low-light conditions 3.

The National Highway Traffic Safety Administration has launched multiple investigations into Tesla’s Full Self-Driving technology following crashes, including incidents involving pedestrians 4.

Simulations conducted by safety advocacy groups demonstrated potential hazards, including a Tesla with FSD software failing to stop for a school bus with its stop sign deployed 5.

Critics argue that Tesla’s terminology like “Full Self-Driving” potentially misleads consumers about the technology’s capabilities, with studies showing drivers often engage in distracting activities while using these systems 4.

The robotaxi launch represents a significant escalation in autonomy that faces substantial regulatory scrutiny, with the NHTSA’s ongoing investigations potentially impacting Tesla’s ambitious rollout plans.

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