Tesla Cybertruck production suspended amid concerns over slowing sales

What just happened? It appears that demand for the controversial Tesla Cybertruck is slowing down. The EV company this week told workers at its Austin factory to take three days off, during which time they would still be paid the equivalent of an 8-hour shift for each day.

According to an internal memo (seen by Business Insider) sent to workers on Monday, Tesla instructed employees on its Cybertruck production line not to report to work from December 3 to December 5.

The message said that the employees would return to the line on December 6. It added that some workers would follow a different schedule and would be notified separately.

We still don’t know exactly why the staff were given the time off, but it’s suspected to be due to demand for the EV slowing down. Sales more than doubled in the third quarter to 16,692, making it the third best-selling EV in the US. This is despite the futuristic-looking vehicle, which costs up to $100,000, being subject to six recalls during its short existence

It’s always possible that the time off could simply be a reward Tesla is giving its employees or for work to be carried out on the line, though that seems unlikely. Elon Musk is quick to post explanations on X whenever negative reports about the billionaire or his companies are published, but he’s not mentioned anything about the situation.

Workers on the Cybertruck line told Business Insider that this wasn’t the first time their schedules had been changed. There have been several occasions since late October when they were sent home or given additional training exercises or cleaning duties to fill their scheduled work hours.

“When I started at Tesla you could expect to get overtime pay, now I feel lucky to get 40 hours,” said one person on the Cybertruck line.

Electrek reports that despite EV sales being up in 2024, Tesla is one of the few manufacturers of these vehicles that has sold fewer cars so far this year than it did in 2023. That’s despite the good third quarter, which was largely down to rising sales in China.

Elon Musk once said he expected to sell more than 150,000 Cybertrucks per year. Sales are currently estimated to be less than half that figure.

Reasons for the Cybertruck’s recalls include windshield wiper failure, loose exterior trim, faulty drive unit inverters, and the accelerator pedal pad becoming stuck, causing unintentional acceleration. There have also been concerns over its structural rigidity.

A recent study from auto research firm iSeeCars claimed that Tesla vehicles have the highest rate of fatal accidents among all car brands.