Poor sales will force Tesla to stop Cybertruck production by mid-2027
Tesla is set to conclude Cybertruck production at its Texas gigafactory by mid-2027, as stated by CEO Elon Musk on Friday. This decision comes after years of consistently low sales for a model that was once promoted as a competitor to traditional pickup trucks. Musk stated in an X post that the production wind-down would allow the automaker to facilitate increased output of its newly launched Cybercab model, which the billionaire has positioned as central to Tesla’s robotaxi ambitions. The announcement arrives following a challenging week for Musk, marked by his unprecedented political expenditure of nearly half a billion dollars, which produced minimal returns in Tuesday’s US midterm elections, as the overwhelming majority of Republican candidates he supported faced defeat in their respective races. Combined, his companies were poised to experience a decline exceeding $370 billion in market capitalisation for the week. While it remains uncertain whether production of the Cybertruck will be relocated to an alternative facility or discontinued altogether, it is noteworthy that Tesla’s Austin plant is the sole facility known to possess the capability to produce the specialised components required for the heavy, angular model.
In a recent interaction on X, Musk described the Cybertruck as the “best vehicle Tesla has ever made” and referred to the wind-down as the “end of an era.” The US electric vehicle manufacturer commenced the delivery of the Cybertruck to customers in late 2023. Automotive data platform Kelley Blue Book reports that the company sold merely 20,237 Cybertrucks in the US last year, reflecting a decline of 48 per cent from the 38,965 units sold in 2024. Around the commencement of production in 2023, Musk projected annual sales of 250,000 units. “It doesn’t make sense to keep it going when it’s not meeting its targets,” said former Aston Martin CEO Andy Palmer. “Every rational auto guy would say the same. It will no doubt only be a rounding error on Tesla’s balance sheet, but the statistics speak for themselves.” Musk’s SpaceX emerged as one of the model’s most significant customers last year, acquiring Cybertrucks valued at $131 million from Tesla in 2025 at the list price, as indicated in its IPO filing. From its introduction in 2019, the Cybertruck has been a contentious decision for Musk. Pickup truck purists derided its angular design, while safety experts forecasted challenges in securing approval for sale in crucial markets like Europe.
The unveiling event was overshadowed when Musk attempted to demonstrate the shatterproof nature of the windows by having metal balls thrown at them, resulting in significant cracks in two of the windows. During the Cybertruck’s official launch in 2023, Musk touted it as a futuristic competitor to pickup trucks from General Motors and Ford, stating, “Finally, the future will look like the future.” However, the model has faced challenges in fulfilling those expectations. Tesla has announced 11 recalls for the Cybertruck since its market introduction in late 2023, as reported by the National Highway Traffic Safety Administration. Some vehicles necessitated physical repairs, whereas others were rectified via over-the-air software updates. Automotive analyst Felipe Munoz noted that despite the Cybertruck being labelled a failure due to its lacklustre sales, electric pickups from Ford and various other manufacturers have similarly faced challenges in the US market. “All of them lost the competition because electric pick-ups aren’t popular in the US,” Munoz said.
However, the Cybertruck’s angular stainless-steel design constrained its potential in regions like Europe, where electric vehicles enjoy greater popularity. Regulatory approval in Europe faced insurmountable challenges due to stringent rules regarding pedestrian impact. “Anywhere where you have crash regulation that takes into account pedestrian impact, that Cybertruck won’t go, can’t go,” Palmer said. The Cybercab, featuring butterfly doors and devoid of a steering wheel, pedals, or mirrors, represents one of Musk’s pivotal investments in his strategy to transform Tesla into a company focused on AI and robotics, rather than merely an automobile manufacturer. Musk has indicated that he views it as Tesla’s primary autonomous model, providing a worldwide network of robotaxis. After years of postponements regarding Musk’s self-driving objectives, Tesla commenced providing paid rides in a limited fleet of Cybercabs in Austin in September.
However, the automaker still must address the enquiries from the US auto safety agency regarding whether it has adequately self-certified the Cybercab to prove adherence to federal motor vehicle safety standards. The National Highway Traffic Safety Administration initiated an audit in September to evaluate the rationale behind that certification. “Cybertruck was an incredible technology development platform and lives on through Cybercab,” Cybertruck lead engineer Wes Morrill said on X. However, the Cybercab is unlikely to compensate for the lost volumes of the Cybertruck in the near term. The two-seater robotaxi remains a nascent initiative, with production commencing only earlier this year. Tesla has reported an installed capacity exceeding 125,000 units. Approximately 570 of the over 1,200 Tesla robotaxis currently in operation in Texas are classified as Cybercabs, while the majority of the remaining vehicles are primarily Model Y units, as reported by the state’s Department of Motor Vehicles.
