Tesla is winding down production of its angular electric pickup at Gigafactory Texas around mid-2027 to clear factory space for the autonomous Cybercab, ending a vehicle plagued by steep price hikes and plunging sales.
Tesla plans to suspend assembly of the vehicle in approximately eight months, according to Chief Executive Elon Musk. The company intends to return customer deposits because order volume outpaces manufacturing capacity before the line closes. When Tesla originally showcased the angular stainless steel vehicle in Los Angeles on November 21, 2019, Musk promoted a starting price of $39,900 and promised deliveries beginning in 2021.
Production suffered approximately two years of delays before commercial handovers started at the end of 2023. During the initial rollout, Musk projected annual sales of 250,000 units, a target that ultimately remained unfulfilled as actual registrations fell short. Kelley Blue Book estimated that Tesla sold 38,965 units across the United States in 2024.
The Cybertruck order rate far exceeds our production rate. We will try to make as many as possible before shutting down the line in about 8 months, but will have to return deposits for a lot of people. This is not a case of Cybertruck being unprofitable, as has been misreported… https://t.co/rGmNKV3ILs
In the third quarter of 2024, Cox Automotive estimated 14,416 sales before figures fell to 3,519 in the first quarter of 2026 and 3,744 in the second quarter of 2026. Deliveries for the category grouping the pickup alongside the Model S, Model X, and Semi hit 8,295 units in the third quarter of 2026, marking a 48% decline year-over-year and the lowest reading since the second quarter of 2021 according to Electrek.
Tesla Reduces Texas Output to Focus on Self-Driving Technology
Tesla will gradually reduce output in Texas by mid-2027 to refocus operations on self-driving technology. Musk stated on his social media platform X that Cybertruck order rates far outpace our production rate. We will try to build as many as possible before closing the line in about eight months, but we will have to return deposits to many people
.
Wes Morrill, the project’s chief engineer, also posted comments on the platform regarding the vehicle’s eventual discontinuation.
The decision stems from strategic shifts rather than profitability concerns, according to company statements. Musk emphasized that manufacturing requires dedicated engineers and complex supply chains.
He wrote on X that if we have to maintain a complex production line, a supply chain, and allocate engineering for the Cybertruck, we cannot use those people or that factory space to scale the Cybercab, which is the vehicle that will profoundly transform the world of land transport
.
Before desmantelating the line, the factory on the outskirts of Austin plans to add an extra work shift to deliver as many units as possible.
Elon Musk just confirmed that Tesla will wind down Cybertruck production at Gigafactory Texas around mid-2027 to make room for increased Cybercab production This marks a major shift in Tesla's manufacturing priorities, with Giga Texas preparing to dedicate more production… https://t.co/aOj5Yf33om pic.twitter.com/NzLmLSHD7p
Internal corporate purchases also boosted early registration numbers. S&P Global Mobility data cited by Electrek showed that SpaceX purchased 1,279 units in the final quarter of 2025, while companies controlled by Musk acquired 1,339 units in total, representing roughly 19% of United States registrations that quarter. Over the course of the full year 2025, SpaceX directed $131 million toward acquiring the electric trucks.
Rising Prices Drive Sharp Drop in Vehicle Sales
The vehicle debuted in November 2019 with a promised starting price of 39,900 dollars, but commercial units arrived at higher rates. By August, the dual-motor version climbed to USD $74.990, while high-end editions reached USD 102.000. By November 6, 2026, the lowest-priced version available for orders reached $92,490 according to Electrek, following price revisions that increased the Premium AWD model to $92,490 and the Cyberbeast to $102,490.
Market demand dropped sharply after early enthusiasm. United States sales fell 48% in 2025 to 20,237 units, down from 38,965 vehicles in 2024, according to figures from Kelley Blue Book. Registrations declined another 28% during the first nine months of 2026, dropping to 11,586 units compared to the same period in 2025, with 4,323 units sold in the third quarter of 2026 alone.
Dan Ives told CBS News that the outcome was on the wall
due to high pricing and weak consumer pull. Investor Gary Black also reacted to the announcement by calling it a missed opportunity.
Quality Issues and Regulatory Scrutiny
The pickup faced continuous engineering hurdles alongside its commercial slide, with early builds exhibiting visibly misaligned doors and unique manufacturing variations. The National Highway Traffic Safety Administration recorded 11 recall campaigns for the 2024 model year, covering software faults, exterior trim detachment, and accelerator pedal defects, according to 20Minutos.
A notable recall occurred in April 2024 involving 3,878 vehicles due to accelerator pedal pads that could loosen, alongside a campaign in 2026 affecting 173 units equipped with specific 18-inch steel wheels.
International distribution also faced obstacles. Tesla canceled planned sales in Australia and New Zealand in October, while European road regulations prevented standard homologation due to pedestrian safety rules.
Despite closing the assembly line, Musk defended the vehicle’s legacy on social media. He noted that There will never be another vehicle like this
and confirmed that existing models will keep driving for a long time
.
Earlier coverage: Tesla to wind down Cybertruck production by mid-2027
Tesla will be winding down production of the Cybertruck at Gigafactory Texas around the middle of next year to make room for increased Cybercab production