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tesla shares dip after 3rd production pause in a year

Tesla halts production at Austin factory and faces criticism over robotaxi safety.
Written by
Bullwaves
Published on
June 19, 2025

Tesla shares declined nearly 4% on Tuesday following a report that the company will temporarily stop production of the Cybertruck and Model Y at its Austin, Texas facility. The one-week pause, beginning June 30, is reportedly for production line maintenance and marks the third shutdown at this location in the past year.

The halt comes just as Tesla prepares to launch its Model Y robotaxi pilot on June 22 in Austin. These vehicles are equipped with the latest iteration of the company’s Full Self-Driving (FSD) system, a technology not yet released to the public in its “unsupervised” version.

CEO Elon Musk recently reposted a video on social media showcasing a Model Y robotaxi driving autonomously in Austin, increasing anticipation for the launch.

However, the rollout has sparked protests. Several local groups, including The Dawn Project, have raised concerns about the safety of Tesla’s partially automated driving systems. These systems, such as Autopilot and FSD Supervised, are available in the U.S. and include features like automatic lane keeping and parking. They have been linked to numerous accidents and fatalities, according to data from the National Highway Traffic Safety Administration.

To highlight safety issues, The Dawn Project conducted a demonstration where a Model Y with the current FSD software failed to stop for a school bus and struck a mannequin representing a child.

The group’s founder, Dan O’Dowd, is also the head of Green Hills Software, a competitor in the automotive software market.

Tesla has not commented publicly on the production pause or the safety demonstration.

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