Tesla's sales are still struggling in 2025, and it seems the problem isn't about making cars but rather a dip in demand. The Cybertruck is leading this decline, with thousands of unsold units parked near retail centers. A new report reveals that Tesla is trying to solve this problem by pausing production of both the Model Y and Cybertruck at its Giga Texas facility during Memorial Day week. Since the start of the year, Tesla has also been facing some public criticism tied to CEO Elon Musk’s controversial actions. His impact on how people view the brand has caused many potential buyers to reconsider their choices. While some Tesla enthusiasts have tried to downplay the situation, the numbers are hard to ignore: in Q1 2025, deliveries dropped by 13% year-over-year, and profits plummeted by 71%, falling from $1.39 billion to $409 million.
Production Pauses and Worker Shifts Signal Deeper Demand Issues
Tesla has pointed to the transition to the Model Y and the ramp-up in production as reasons for its disappointing sales. Yet, the quick availability of new orders since the launch seems to tell a different story. The Cybertruck situation is even more troubling—recent reports show that thousands of unsold vehicles, including Foundation Series models that ceased production in October 2024, have been parked for over six months.
These vehicles, left out in the open, may already be facing issues such as brake and tire wear, or even damage from rodents.
While demand for the Model Y has improved, it’s still not enough to justify high production levels. In light of this, Tesla has instructed workers on both production lines to take a break during Memorial Day week—an unusually long pause compared to previous years.
Employees told Business Insider that their schedules have been unpredictable since February, with management cracking down on overtime and warning of disciplinary action for those who clock extra hours. In April, Tesla reassigned workers from the Cybertruck line and cut production targets. That same month, staffing contractor Trigo laid off 50 employees at Giga Texas, further underscoring the signs of a slowdown in operations.