Tesla will stop making the Cybertruck by mid-2027, Elon Musk announced on Friday, shifting production capacity at the company's Texas factory toward its self-driving Cybercab vehicle. Musk, chief executive of both Tesla and SpaceX, said the move is to "make room for increased Cybercab production." The announcement sent Tesla's stock up 4.7% on Friday. It remains unclear whether production will continue at other Tesla factories, though the Texas gigafactory appears to be the only one currently manufacturing the pickup truck.
The Cybertruck has faced persistent challenges since entering commercial production in 2023. Tesla sold only 20,237 units in 2025, down from 38,965 the previous year, according to figures from Kelley Blue Book. This represents a sharp miss from Musk's original prediction of 250,000 annual sales. The vehicle, which initially sold for $60,990, has been plagued by quality problems and multiple recalls involving issues with the rearview camera, pedals and other components. Wall Street analyst Dan Ives of Yorkville Ives & Co told CBS News that "the writing was on the wall" for the Cybertruck given its high price and weak demand.
Since its 2019 unveiling, the Cybertruck has captured attention for its boxy, futuristic design and Tesla's bold claims about its durability and towing capacity of 14,000 pounds. However, the vehicle became entangled in broader debates over Musk's influence, with some people vandalizing Cybertrucks at dealerships as a form of protest related to his role in the Trump administration. Despite the Cybertruck's struggles, Tesla continues to dominate the electric vehicle sector overall, with the majority of sales coming from its Model Y and Model 3 vehicles, according to Cox Automotive.
Tesla unveiled its Cybercab, a two-seat autonomous vehicle with no steering wheel or pedals, in 2024. Commercial production began at the Texas plant in April, with service launching in Austin in September. Ives expects this robotaxi to become central to Tesla's strategy going forward, with the analyst predicting Musk will acquire Tesla using SpaceX, a move he says would give the EV company access to additional computing power and capital.
For investors and potential buyers, Tesla's decision to exit Cybertruck production signals a strategic pivot away from a struggling flagship product toward autonomous vehicles, which carries both opportunity and execution risk for the company's future growth.