Tesla halts Cybertruck production; workforce instructed to observe holiday break
Tesla's Memorial Day Surprise:
Tesla's Austin, Texas factory workers producing the Model Y and Cybertruck were in for a surprise as they were asked to take a break during Memorial Day weekend. This unexpected move is quite different from the same period last year when production was full steam ahead.
According to three employees, Tesla ordered a shutdown for the holiday week. Memorial Day, a federal US holiday honoring those who served in the military, usually falls on the last Monday of May. Employees were notified of the shutdown at the start of the week.
Shaking Up the Factory Routine:
Hourly-paid workers were offered options either to take paid leave or to come in for cleanup and training. However, there was no assembly work involved.
It seems that factory routines have been shaking up since February, with workers reporting increasingly irregular hours. Some even claimed to have been sent home early multiple times. Overtime was severely restricted at the Austin plant as of February, and workers were warned of potential disciplinary action if they exceeded their scheduled hours.
A Shaky Start:
The long Memorial Day shutdown isn't Tesla's only recent challenge. In April, Tesla reported a 13% decrease in deliveries compared to the same month last year, despite producing nearly 26,000 more electric vehicles than they delivered. This gap between production and delivery can likely be attributed to production snags.
The Cybertruck, in particular, has had a tough run. The company halted production for three days in December 2024, and early this year, production targets were lowered. Some workers have even been reassigned from the production line due to these shifts.
A Mixed Bag:
Tesla's stock has taken a hit this year, falling by about 26%. In March, Elon Musk announced plans to double vehicle production in the US over the next two years, a promise that remains to be seen.
In January, Tesla launched an updated version of the Model Y, its best-selling vehicle. However, signs of weaker sales compared to past updates prompted the company to offer price cuts in April. On Tuesday, they introduced a cheaper version of the electric vehicle.
As of March 20, Tesla had delivered fewer than 50,000 Cybertrucks, according to a voluntary recall report. Despite these challenges, Tesla continues to challenge the status quo in the automotive industry.
- The shutdown of Tesla's Austin, Texas factory during Memorial Day week, a move that opposed the full-steam production of the same period last year, was ordered by Tesla.
- The unexpected factory shutdown, a break from the usual production routines, was announced at the start of the week, giving employees the option to take paid leave or come in for cleanup and training, with no assembly work involved.
- The long Memorial Day shutdown isn't the only recent challenge for Tesla, as the company reported a 13% decrease in deliveries in April compared to the same month last year, despite producing nearly 26,000 more electric vehicles.
- On Tuesday, Tesla introduced a cheaper version of its best-selling vehicle, the Model Y, after signs of weaker sales compared to past updates prompted the company to offer price cuts.