Tesla will return deposits to some Cybertruck customers as the company prepares to halt production of the electric pickup truck, CEO Elon Musk announced Monday. Musk said in a social media post that the Cybertruck order rate "far exceeds" Tesla's production rate, forcing the company to refund customers who will not receive vehicles. "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," Musk wrote.
The decision follows Musk's announcement last week that Tesla would stop producing the Cybertruck at its Texas factory by mid-2027 to make room for increased production of the Cybercab, the company's robotaxi line. In his Monday post, Musk disputed claims that Tesla was ending Cybertruck production because the vehicle was unprofitable. Instead, he said the "opportunity cost of the complexity of Cybertruck is vastly outweighed by the value of incremental Cybercab production."
Wall Street analyst Dan Ives of Yorkville Ives & Co. told CBS News the outcome was predictable given the Cybertruck's high price and low demand. Ending production will free up time for Musk to focus on robotics and robotaxis, Ives added. Tesla launched the Cybertruck in 2019 with a starting price of $69,000. In a Saturday post, Musk said Tesla would continue Cybertruck production for another eight to nine months before shifting focus to the Cybercab, describing the Cybertruck as a vehicle "there will never be another like."
For investors and prospective buyers, this means some customers who placed deposits will not receive their vehicles, while Tesla redirects manufacturing capacity toward its robotaxi ambitions.