Tesla Temporarily Halts Cybertruck Production Amidst Rumors of Slumping Demand

Workers at Tesla's factory that produces Cybertrucks have been informed to take the next three days off. The notice was given without any explanation, leading to speculation about possible declining sales of the vehicle.

While Tesla operates a production facility in Fremont, the much-discussed Cybertruck is manufactured at the GigaFactory located near Austin, Texas. Reports indicate that activities at the GigaFactory have slowed down significantly. According to Business Insider, production employees were told on Monday to take a break from work starting Tuesday, December 3, through Thursday, December 5. A memo emphasized that they would be paid for these off days and were expected to return to work on Friday, December 6.

Recently, a tragic incident occurred when three individuals lost their lives due to a Cybertruck fire in Piedmont after the vehicle collided with a concrete wall. Although federal regulators are investigating the situation, it is unlikely this incident prompted the temporary work stoppage. Instead, electric car enthusiasts speculate that the reason could be linked to a noticeable drop in demand for the Cybertruck.

According to Business Insider, employees of the Austin factory reported that their work schedules have been unpredictable since late October. Some claimed they were asked to go home upon arrival at work, or were given training sessions instead of engaging in production tasks, while others were assigned chores like cleaning.

One long-term worker expressed that when they joined Tesla, they could anticipate overtime work, but now, they feel blessed to work a full 40-hour week.

Initially, the demand for the Cybertruck surged following its delayed release in 2023, with approximately two million pre-orders reportedly made. It was thought to be the most sought-after electric truck in the US at that time. Nevertheless, as early supporters of the vehicle have obtained theirs, there seems to be a lag in interest from average consumers. Compounding these issues are six recalls issued for the Cybertruck since its launch, which may further deter potential buyers.

Tesla, Production, Demand