Tesla will wind down production of its Cybertruck around the middle of 2025 at its Texas factory to make room for increased output of the Cybercab, the company's self-driving taxi, Elon Musk announced. The decision marks an end to the electric carmaker's effort to compete in the lucrative US pickup truck market, a segment where the vehicle failed to gain significant traction despite years of development.
Musk did not say whether Tesla has plans to produce the Cybertruck at another factory, although doing so would likely require substantial investment in specialised tooling. The move reflects Musk's shift in strategy away from the traditional carmaker approach of developing a steady stream of new models for private buyers. Instead, the billionaire chief executive is prioritising robotics, artificial intelligence and autonomous driving technology as the core focus for Tesla's future.
The Cybertruck has faced significant challenges since deliveries began in late 2023 following multiple delays caused by the technical difficulties of manufacturing the vehicle, particularly its steel shell. The vehicle never reached sale in Europe after failing to meet required safety standards. Musk acknowledged the difficulties in a 2023 earnings call, saying: 'We dug our own grave with Cybertruck,' and noted 'enormous challenges' in scaling production and generating profit from it. The company had initially aimed to sell 200,000 Cybertrucks annually but never came close to that target. Tesla does not report Cybertruck sales separately, but delivered only 8,300 'other models', which include the Cybertruck, during the third quarter of 2026, compared with 478,000 combined deliveries of its Model 3 saloon and Model Y SUV.
Tesla has already started offering paid trips in the Cybercab in limited parts of Austin, Texas. The vehicle seats two passengers and has no steering wheel. However, the pace at which the company can expand the taxi service across the US and beyond remains unclear given the close regulatory scrutiny of driverless car technology. The Texas factory will also be used to build Tesla's Optimus humanoid robot. Beyond the Cybercab, Tesla is ramping up production of its long-delayed Semi electric truck and aims to begin producing a road-bound version of the Roadster sportscar in 2028, though analysts do not expect the latter to significantly impact future profits.
For investors and consumers, Tesla's decision to abandon the Cybertruck marks a major strategic shift away from traditional vehicle sales toward autonomous and robotic technologies, with unclear profitability timelines and regulatory approval pathways.