Tesla has instructed workers on its Model Y and Cybertruck production lines at its Austin, Texas factory to stay home for the week of Memorial Day, according to three workers who spoke to Business Insider. This unexpected pause follows a series of production adjustments, highlighting challenges in meeting demand for Tesla’s electric vehicles, particularly the Cybertruck. The automaker has been grappling with an inventory surplus, with over 10,000 unsold Cybertrucks—valued at nearly $800 million—piling up, many of which are 2024 models, including discontinued Foundation Series units.
The decision comes amid reports of Tesla scaling back Cybertruck production targets since December 2024, with some workers reassigned to the better-selling Model Y line. In February, the company also cracked down on overtime hours, threatening disciplinary action for non-compliance. Tesla’s Cybertruck sales plummeted to 6,406 units in Q1 2025, down from 12,991 in Q4 2024, far below Elon Musk’s ambitious 250,000 annual sales goal. The Model Y, while more popular, has also seen a year-over-year sales decline.
This production halt raises questions about Tesla’s strategy as it navigates market volatility, increased competition, and public backlash tied to Musk’s political affiliations. With discounts of up to $11,990 on Cybertrucks and incentives like free lifetime Supercharging failing to clear inventory, Tesla faces pressure to recalibrate. The week-long pause may signal deeper restructuring as the company aims to align production with softening demand.