Tesla Stock (TSLA) Falls as Production Halt Overshadows Robotaxi Hype

Tesla (TSLA) stock declined about 4% on Tuesday following a Business Insider report that revealed that the electric vehicle (EV) maker is halting the production of its Cybertruck and Model Y vehicles for a week at its Austin facility in Texas. The news overshadowed the excitement around Tesla’s Robotaxi launch on June 22. TSLA stock is down about 22% year-to-date.

Tesla’s Production Pause Impacts Investor Sentiment

According to Business Insider, Tesla informed its staff about its decision to pause production on the Cybertruck and Model Y lines for a week at the Austin factory. The shutdown would commence in the week of June 30, with production scheduled to resume the following week. Tesla intends to use this pause to perform maintenance on its production lines.

Tesla reportedly told its staff that the improvements made during this time would boost production, though the company didn’t provide any details about the lines that could see higher output.

The report noted that this would be at least the third such production halt in 2025. Tesla has been under pressure due to its underwhelming Q1 results, weak demand amid intense competition, and backlash related to Musk’s political activities. The recent tiff with President Donald Trump was also an unnecessary distraction.  

All eyes are on the tentative launch of Tesla’s Model Y robotaxi in Austin on June 22, using vehicles equipped with a new version of the company’s Full Self-Driving (FSD) technology. Several groups in Austin have been protesting the upcoming robotaxi pilot launch and Musk’s involvement in the Trump administration.

Is Tesla Stock a Buy, Sell, or Hold?

Given ongoing macro challenges and company-specific headwinds, Wall Street has a Hold consensus rating on Tesla stock based on 14 Buys, 12 Holds, and nine Sells. The average TSLA stock price target of $286.14 indicates 10% downside risk from current levels.

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