Tesla Plans to Stop Cybertruck Production to Focus on Autonomous Robotaxis

Tesla Chief Executive Elon Musk announced on Friday that the automaker will wind down production of its Cybertruck electric pickup at its Texas factory next year to shift manufacturing capacity to autonomous Cybercab taxis.

The company plans to phase out the steel-clad truck around the middle of next year after annual sales fell dramatically short of its initial target of 250,000 units.

The decision marks an end to Musk's flagship pickup project as Tesla pivots away from traditional consumer vehicles toward artificial intelligence, robotics and self-driving transport networks.

"Cybertruck was an incredible technology development platform and lives on through Cybercab," said Wes Morrill, the lead engineer for the Cybertruck project, in a post on X.

Tesla delivered only 20,237 Cybertrucks last year, down from 38,965 in 2024, according to sales data compiled by Kelley Blue Book.

Industry analysts said the vehicle struggled to attract mainstream buyers because of poor sales and high pricing across the sector.

"It doesn't make sense to keep it going when it's not meeting its targets," said Andy Palmer, former chief executive officer of Aston Martin.

First unveiled in 2019, the vehicle drew widespread public attention during a live demonstration when a metal ball shattered its supposedly unbreakable glass windows.

Although Tesla originally promised a starting price under $40,000, production delays pushed the truck's release to late 2023, with base models priced around $60,000 and premium versions reaching $102,000.

"A really controversial vehicle unveiled by a controversial individual into a market where none of the electric trucks have been able to really capture demand," said Spencer Penn, a former Tesla executive.

The sharp-edged pickup also failed to gain regulatory approval in Europe because its heavy stainless-steel body did not meet strict international pedestrian safety standards.

In recent years, the vehicle became a target for political protests linked to Musk's public role, with some dealerships and individual trucks facing acts of vandalism.

The Cybertruck is the third model Tesla has chosen to phase out recently, following earlier decisions to stop making the Model S sedan and Model X SUV to free up factory space.

While reports differed on whether manufacturing will cease in mid-2027 or earlier next year, the reports noted that the Texas plant remains the company's only facility equipped to build the vehicle.

Tesla is expanding testing of its two-seater Cybercab in Texas, but regulators have yet to approve driverless commercial fleets nationwide.