Tesla Has Paused Production at Giga Texas - What Is Happening?

Tesla Pauses Production at Giga Texas

I am seeing multiple reports on X.com and Teslarati that say Tesla is pausing production of the Model Y and the Cybertruck at Giga Texas. There have also been multiple screenshots of empty parking lots, showing no Tesla's leaving to be delivered.

How long is this production pause going to last is anyone's guess, but it would make sense if it didn't last past until the end of September. The reason for that is Tesla will take a Q3 2023 hit in its deliveries and earnings, but will have all its upgrades ready to go for Q4 2023.

Joe Tegtmeyer is a drone flyer and videographer who shows videos of Giga Texas constantly and says he thinks production will be paused until the end of September.

There is a chance Tesla is simply in the testing phase, with many employee vehicles being seen in the Giga Texas parking lot. Hopefully this is a sign that the Cybertruck is going to release next month.

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Why Is Production Paused?

Production is likely paused for testing and calibration of vehicles, as well as upgrading and installing production lines for the Model Y and Cybertruck. It is the only thing that makes sense. So far, demand for Tesla's EVs have been strong, with consistent growth every year.

Joe has also flown his drones around and seen manufacturing equipment spotted that signals new and upgrading production lines. Giga Texas may be completed for its phase 1, but there is still construction happening there and will be for a few years.

There are supposedly over 2 million reservations for the Cybertruck, and it's unlikely Tesla will reach any meaningful production this year, and won't reach volume production until the end of next year. I suspect my order in line won't be ready for a few years.

Look for an updated Model Y coming next month as well as an announcement of the Cybertruck delivery next month. I would have liked to see that happen this month in September, but that appears not to be the case.

What do you think about the pause in production at Giga Texas - is it because of upgrades?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News. Image Credit, Tesla, Screenshot