Monday, 9 November 2026NewsWorldBusinessTech
Latest

Elon Musk Says Tesla Will Phase Out Cybertruck by Mid-2027

Tesla will phase out production of the Cybertruck at the Gigafactory Texas by mid-2027 to clear factory space for manufacturing the Cybercab.

From Pickup Ambitions to Factory Phase-Out

Chief Executive Officer Elon Musk announced the production end date on the platform X, stating that the facility will let Tesla will phase out production of the Cybertruck at the Gigafactory Texas by the middle of next year to create space for increased Cybercab production according to Tikr. The stainless-steel electric pickup launched in November 2023 following a high-profile unveiling in November 2019.

Initial plans outlined by Musk targeted an annual production rate of 250,000 vehicles. Actual sales tallies remained far below those projections, prompting the manufacturer to scale back output and adjust factory priorities.

Following the announcement, Chief Executive Officer Elon Musk described the discontinuation on X as the end of an era while calling the vehicle the best creation the company ever built, adding via CNBC that the existing fleet will remain on roads for a long time.

The decision echoes prior actions by the manufacturer, such as the January 2026 earnings call announcement to halt Model S and Model X production at the Fremont plant to reconfigure space for the humanoid robot Optimus. In Europe, the model never received approval for street use due to regulatory non-compliance regarding pedestrian safety standards stemming from its sharp angles and pointed exterior geometry.

US Sales Dropped by 48 Percent During 2025

Market analysts at Kelley Blue Book estimated US sales dropped 48 percent to 20,237 units during 2025.

Corporate purchases accounted for part of the vehicle’s deployment. Financial disclosures revealed that aerospace manufacturer SpaceX bought Cybertrucks with a list value of $131 million from Tesla throughout 2025.

Data from the first nine months of the year recorded 11,586 units sold in the United States, reflecting a 28 percent decrease compared to the prior-year timeframe, with 4,323 units sold during the third quarter alone.

Tesla cybertruck produktionsende teilen de
Photo: Netz Trends

Financial disclosures from the third quarter of 2026 indicated that the combined category for the pickup alongside the Model S and Model X accounted for 8,295 deliveries, representing less than two percent of the total 486,532 global deliveries in that period.

Ret Allocation at the Texas Facility

Before the assembly line is dismantled in 2027, the factory in Austin will run an additional shift to clear out existing customer orders, Börse Express reported. Wes Morrill, lead engineer for the vehicle project, addressed the transition on X, noting that The Cybertruck was a great platform for technological developments and now lives on in the Cybercab according to Manager Magazin.

The company intends to direct factory resources toward building the autonomous Cybercab, a vehicle designed without conventional steering controls or pedals. Regulatory oversight accompanies the shift, with the National Highway Traffic Safety Administration reviewing the certification process for autonomous vehicles.

According to reports from Electrek, questions remain regarding whether factory space constraints serve as the true driver for the shutdown, given that the Texas site spans over ten million square feet and features largely underutilized zones dedicated to the pickup line.

Investment commentary from GLJ Research analyst Gordon Johnson maintained a sell rating and a price target of $24.86 ahead of the annual shareholder meeting scheduled for December 3, 2026. Meanwhile, third-quarter financial results for SpaceX showed revenues climbing 161 percent to $14.6 billion alongside a net income of $4.4 billion.