Sounds like a sensor wire is grounding out or maybe the end broke off the sensor as mine did and it is grounding out.
If this happens, and the key is turned on, the gauge will go to full scale.
There are 2 temperature sensors, one for the gauge and one for the engine management system. The gauge sensor has one wire, the engine management one has 2.
They are located in the thermostate housing at the back of the engine block, under the wiper shroud.
The gauge sensor is all but impossible to get to. Maybe from below if the car is on a lift? I have no lift. It is dead center under the thermostate housing cover. The other one is towards the passenger side and can be gotten to, but not easily.
With the wiper shroud off, I drilled and tapped a new 1/8 NPT hole into the top of the thermostate housing at the boss on the casting where there is a bit of thickness to tap into and installed a new sensor.
$9.00 from Advance Auto. Look for a "temperature gauge sending unit".
This info comes from a Gen 1 owner, maybe a 2 or 3 are different?
Longnecker