Tesla to End Cybertruck Production to Prioritize Cybercab
Elon Musk announced Tesla will wind down Cybertruck production by mid-2027 to repurpose Texas factory capacity for the autonomous Cybercab robotaxi.
Tesla CEO Elon Musk announced that the company will wind down production of the Cybertruck at its Texas gigafactory by mid-2027. The decision aims to repurpose manufacturing capacity for the Cybercab, a two-passenger autonomous robotaxi without a steering wheel or pedals. To address a significant order backlog before the line is dismantled around June or July 2027, Tesla is adding an extra production shift for the next eight months, though Musk noted the company will have to return deposits to many customers.
The shift follows a sharp decline in Cybertruck demand and commercial failure. While Musk initially projected annual sales of 250,000 units, U.S. sales dropped nearly 48% from 38,965 in 2024 to 20,237 in 2025. The vehicle's struggle was compounded by 11 safety recalls, quality-control issues, and price increases that saw the base model rise from a promised $39,900 to $92,490 by November 2026. The truck also faced limited global viability due to European safety regulations.
This move is part of a broader strategic pivot toward artificial intelligence and robotics. Tesla has already halted production of the Model S and Model X at its Fremont factory to make room for Optimus humanoid robots. While paid Cybercab rides launched in Austin in September 2026, the vehicle is currently under audit by federal safety regulators. Musk characterized the Cybertruck as the "best vehicle Tesla has ever made," while lead engineer Wes Morrill described it as a technology development platform that lives on through the Cybercab.
