June 18 – Shares of Tesla (NASDAQ:TSLA) fell nearly 4% on Tuesday after reports of temporary production halted at its Austin, Texas plant, curbing investor sentiment ahead of the company’s highly anticipated Robotaxi launch. The stock has fallen about 22% so far this year.
According to Business Insider, Tesla plans to suspend its Seberak and Model Y models starting June 30. The company reportedly told employees that downtime would allow maintenance and upgrades on the production line. Detailed information on which areas may improve output has not been provided.
This at least marks Tesla’s third production suspension in 2025. EV manufacturers are under pressure after disappointing first-quarter results and increasing competition in the global electric vehicle market. CEO Elon Musk’s political ties and recent public disputes have also attracted investors’ attention.
Meanwhile, Tesla is preparing to launch a pilot version of its Robotaxi service in Austin on June 22. The plan will use Model Y vehicles equipped with the company’s latest complete autonomous driving software. Local groups expressed opposition to the plan with concerns about security and transparency.
In addition, Wells Fargo has expressed frustrated prospects for Tesla’s second-quarter performance. Analyst Colin Langan warned that delivery will need to jump more than 50% in June to reach Wall Street targets. He also predicts a free cash flow deficit of $1.9 billion for the year and cuts its target to $120, reflecting a possible 62% disadvantage.
According to a one-year price target provided by 43 analysts, the average target price for Tesla is $289.30, an overestimate of $500.00 and an underestimate of $19.05. The average target means the current price is $316.35 with a disadvantage of -8.55%.
According to Gurufocus’s estimate, Tesla Inc’s estimated GF value for one year is $269.36, indicating the current price of $316.35 has a disadvantage of -14.85%.
This article first appears on Gurufocus.
