A recent Business Insider report revealed that electric vehicle (EV) maker Tesla (TSLA) is halting the production of its Cybertruck and Model Y vehicles for a week at its Austin facility in Texas. According to the report, the shutdown is scheduled to begin during the week of June 30, with production resuming the following week.
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Tesla intends to use this pause to perform maintenance on its production lines and informed its staff that the improvements made during this time would boost production, although it didn’t provide any details about the specific lines that could see higher output. It is worth noting that 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.
Nevertheless, all eyes are on the tentative launch of Tesla’s Model Y robotaxi in Austin on June 22, which will use vehicles equipped with a new version of the company’s Full Self-Driving technology. Unsurprisingly, though, 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 the 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. Furthermore, the average TSLA stock price target of $286.14 indicates 11.3% downside risk from current levels.
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