Tesla Stock plummets as Austin Factory Shuts Down Cybertruck Line

June 18 – Tesla (NASDAQ:TSLA) shares fell nearly 4% on Tuesday after reports surfaced of a temporary production halt at its Austin, Texas facility, dampening investor sentiment ahead of the company’s highly anticipated Robotaxi launch. The stock has declined about 22% so far this year.

According to Business Insider, Tesla plans to suspend manufacturing of its Cybertruck and Model Y models for a week starting June 30. The company reportedly told employees the downtime would allow for maintenance and upgrades on the production lines. No details were provided on which areas may see output improvements.

This marks at least the third production pause for Tesla in 2025. The EV maker has been under pressure following disappointing first-quarter results and increasing competition in the global electric vehicle market. Investor concerns have also been fueled by CEO Elon Musk’s political ties and recent public disputes.

Meanwhile, Tesla is preparing to roll out a pilot version of its Robotaxi service in Austin on June 22. The initiative will use Model Y vehicles equipped with the company’s latest Full Self-Driving software. Local groups have voiced opposition to the program, citing safety and transparency concerns.

Separately, Wells Fargo issued a downbeat outlook on Tesla’s second-quarter performance. Analyst Colin Langan warned that deliveries would need to jump over 50% in June to meet Wall Street targets. He also forecast a $1.9 billion free cash flow deficit for the year and slashed his price target to $120, reflecting a possible 62% downside.

Based on the one year price targets offered by 43 analysts, the average target price for Tesla Inc is $289.30 with a high estimate of $500.00 and a low estimate of $19.05. The average target implies a downside of -8.55% from the current price of $316.35.

Based on GuruFocus estimates, the estimated GF Value for Tesla Inc in one year is $269.36, suggesting a downside of -14.85% from the current price of $316.35.

This article first appeared on GuruFocus.