Tesla will discontinue Cybertruck production at its Texas gigafactory around mid-2027, following a prolonged period of disappointing sales, according to CEO Elon Musk.
The Cybertruck, which has been criticized for its design and faced numerous regulatory challenges, was once seen as a game changer in the electric pickup market.
Transitioning to Cybercab Production
Musk announced that Tesla would add an extra production shift to fulfill existing Cybertruck orders before dismantling the production line to focus on the Cybercab, a key component of the company's autonomous vehicle strategy.
The Cybertruck order backlog is currently far more than Tesla can make before dismantling the line for Cybercab expansion around June/July next year.
Elon Musk, CEO of Tesla
- Tesla delivered 20,237 Cybertrucks in 2025, a 48% decline from 2024.
- The company had initially projected annual sales of 250,000 units.
Despite Musk's enthusiasm for the Cybertruck, analysts believe the vehicle's sales figures do not justify continued production. Former Aston Martin CEO Andy Palmer stated, "It doesn’t make sense to keep it going when it’s not meeting its targets."
The Cybertruck has been plagued with 11 recalls since its launch in late 2023, with some requiring physical repairs and others addressed through software updates.
Regulatory Hurdles and Market Reception
The Cybertruck's distinctive design has limited its marketability, particularly in Europe, where regulatory approval is difficult due to strict pedestrian safety laws. Palmer noted, "Anywhere where you have crash regulation that takes into account pedestrian impact, that Cybertruck won’t go, can’t go."
Despite struggles in the electric pickup sector, Tesla's shift towards the Cybercab represents a broader strategy to transition from a traditional car maker to a robotics and AI-focused company.
Looking Ahead
The Cybercab, designed without traditional driving controls, is part of Musk's vision for Tesla's future as a leader in autonomous transportation. Production began earlier this year, but the model is still in its infancy.
With Tesla's stock price under pressure, the company must navigate its ambitious goals in the increasingly competitive electric vehicle landscape.