Wajeeh Khan
2 min read
In This Article:
Tesla (TSLA) shares are in focus following reports the electric vehicle maker plans on temporarily suspending production of its Cybertruck and Model Y at its Austin factory.
According to Business Insider, the company will pause production on June 30 and will resume it in the following week. TSLA will use that time to perform maintenance on production lines that it believes will help accelerate production in the second half of 2025.
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Including today’s price action, Tesla stock is up some 54% versus its year-to-date low set on April 8.
While the temporary production shutdown announced sounds concerning at first, it could be a precursor to something positive for TSLA shares.
Tesla has framed the pause as part of a broader effort to enhance manufacturing efficiency, which is particularly important for the Cybertruck given it’s faced a slower-than-expected production ramp since its launch.
Any sign that the EV maker is preparing to increase output, especially for its high-margin vehicles, could boost investor sentiment and revenue expectations for the back half of this year.
Together, this could drive the Tesla stock price up further in the months ahead.
Despite a notable rally in the EV stock since early April, Cantor Fitzgerald analysts led by Andres Sheppard remain fully convinced that TSLA is not out of juice just yet.
Sheppard expects the automaker’s expected launch of robotaxi services in Austin this weekend to unlock significant further upside in Tesla shares. Note that the Nasdaq-listed firm plans on rolling out a “Cybercab” without a steering wheel in 2026 as well.
Additionally, the company’s work on its Optimus humanoid robot that is scheduled for customer deliveries in 2027 offers another compelling reason to own TSLA stock for the long term, the analyst concluded.
Sheppard currently has a $355 price target on Tesla, indicating potential upside of roughly 10%.
Other Wall Street analysts have dialed down expectations for Tesla stock in 2025.
The consensus rating on TSLA currently sits at “Hold” only with the mean target of about $292 indicating potential downside of 10% from here.
