Tesla, under the management of Elon Musk, announced that production of the Cybertruck at its Texas factory will be halted by mid-2027. This decision was made to make room for increasing the production of the Cybercab, the company's advanced robotaxi vehicle.
Cybertruck Developments
Elon Musk wrote in a post on social media platform X that "production of the Cybertruck at the Texas Gigafactory will be halted around mid-next year to increase Cybercab production." He did not clarify whether the Cybertruck would be produced elsewhere or completely discontinued, nor did he mention the status of remaining orders.
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Market Challenges and Tesla's Future
Wes Muriel, the chief engineer of the Cybertruck, stated in a separate post that this vehicle has been "a platform for amazing technology development and will continue through the Cybercab." However, some fans found the news of the Cybertruck production halt disappointing, but Musk assured that the Cybertruck fleet "will be available for a long time."
The Cybertruck, unveiled in November 2019 and receiving 250,000 pre-orders at that time, has faced repeated delays, with customer deliveries only starting in late 2023. Tesla had launched its production lines in Texas with a planned capacity of 250,000 vehicles per year, but sales have been significantly lower than this figure. According to estimates, total sales of the Cybertruck reached only 72,702 units.
With declining demand in the United States, Tesla began selling the vehicle in foreign markets, with deliveries starting in South Korea and the United Arab Emirates. The vehicle has also faced several recalls and lawsuits regarding build quality.
Stephanie Valdez Straty, an industrial insights manager at an automotive consulting firm, said, "The decision to halt Cybertruck production reflects the difficulty in converting initial attention and enthusiasm into sustainable market demand." She added that Tesla viewed this vehicle as an effort to enter the large U.S. pickup market, but it quickly became a "niche" product.
The Cybercab, a two-seater vehicle without a steering wheel and pedals, was unveiled in October 2024, with production starting in April. This vehicle will provide paid services through Tesla's robotaxi service in Austin starting September 2025. The success of this robotaxi depends on the delivery of fully autonomous technology, which Tesla has yet to demonstrate widely.
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