Tesla CEO Elon Musk announced Friday that the company will wind down production of the Cybertruck at its Texas Gigafactory around the middle of 2027 to prioritize the Cybercab, a purpose-built robotaxi.
Tesla prioritizes autonomous vehicles
Manufacturing priorities at Tesla are moving toward artificial intelligence and autonomy. Musk noted on X that the wind-down would facilitate the scaling of the Cybercab business.
True, but the Cybertruck fleet will be around for a long time
The project’s lead engineer, Wes Morrill, suggested on the same platform that the Cybertruck served as an incredible technology development platform
that will live on through the Cybercab.
Tesla has recently discontinued other models to repurpose factory space. Earlier this year, the company dropped the Model S and Model X to free factory space for its Optimus robot, according to the Austin American-Statesman.
Cybertruck was an incredible technology development platform and lives on through Cybercab. Thanks to everyone who contributed to making the future looking like the future As well to the community of owners whose adventures I've enjoyed and will continue to follow ❤️ https://t.co/0nZoTJYC5o
Sales targets miss market reality
Tesla sold 20,237 Cybertrucks in the U.S. last year, a 48 per cent decrease from the 38,965 units sold in 2024, according to Kelley Blue Book data reported by CBC.
This decline follows a period of lower-than-expected demand. Although Musk predicted annual sales of 250,000 units when commercial production began in 2023, actual sales figures have consistently fallen short. CleanTechnica notes that Musk had previously pitched the 250,000-unit annual goal, while Electrek estimates a peak of about 30,000 units per year: just over 10 percent of the original projection.
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
Tesla’s internal financial metrics regarding the project include the following figures reported by CleanTechnica:
- $2bn spent on research and development
- Installed tooling to build 125k Cybertrucks a year
- 70k units sold over 3 years
- $100m in gross profits from sales
- $1.9b net project loss
Former Aston Martin CEO Andy Palmer commented on the difficulties of bringing such a vehicle to global markets: the Cybertruck would be unable to enter any region where crash regulations account for pedestrian impact.
Cybertruck dead, alongside the dreams of 5-year-olds everywhere who scribbled futuristic cars on playroom walls.https://t.co/eLZWztr27O#testla #ev
Recalls and safety inquiries challenge Cybertruck design
Since its initial unveiling in November 2019, the Cybertruck has faced scrutiny regarding its design and functionality.
A series of recalls—including one in 2025 that involved more than 46,000 Cybertrucks due to fears that some trim could detach—would not have provided any assistance.
Federal auto safety regulators continue to inquire whether Tesla provided proper certification that the vehicle complies with federal safety standards.
Pricing for the various models has also shifted over the vehicle’s lifecycle. While Musk once told Wall Street analysts that the truck would be at a price people could afford—which resulted in a $61,000 (then £48,000) price point for all the bells and whistles
—the 2026 “Cyberbeast” model comes in at $102,000, the BBC notes.
The Tesla Cybertruck order backlog is currently far more than we can make before dismantling the line for Cybercab expansion around June/July next year. We will add an extra shift to try to get all orders done in time.
SpaceX purchases offset Tesla stock losses
Musk’s other companies have been significant customers despite the sales decline. In its May S-1 filing, SpaceX, the AI and space exploration firm led by Musk, stated it had spent $131 million purchasing Cybertrucks from Tesla in 2025. Depending on the unit price, that amounts to roughly 1,200 to 1,800 vehicles.
Tesla shares climbed 4.23% during Friday’s trading to end at $358.22, partially offsetting the 10.77% loss seen on Thursday during a widespread market downturn.
How will the transition to the Cybercab affect Tesla’s ability to recover its $1.9b net project loss?