Tesla to Wind Down Cybertruck Production by Mid-2027
Tesla plans to stop production of its Cybertruck at the Texas gigafactory around mid-2027, CEO Elon Musk announced on Friday. This decision comes as the vehicle has struggled to gain market traction since its launch in 2023. Musk said this shift will allow for more production of the upcoming Cybercab, a key part of Tesla's robotaxi plans.
The Cybertruck, which initially had over 1 million reservations, has faced challenges like quality control issues and multiple recalls. Tesla sold about 20,000 units last year and has shipped around 16,000 in 2026, according to data from Cox Automotive. Musk had earlier predicted sales of at least 250,000 units each year, but the truck's unique design and pricing have limited its appeal.
Wes Morrill, the Cybertruck's lead engineer, called the vehicle an "incredible technology development platform." He said it will influence future models like the Cybercab. It is unclear if production will move to another facility or be phased out completely. The Austin plant is currently the only Tesla site that can make the Cybertruck's specialized parts. The company did not respond to a request for comment from Reuters.
Musk's focus on the Cybercab fits with his vision to change Tesla into a robotics and self-driving company. The Cybercab is expected to be a key part of a larger network of self-driving vehicles.
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Tesla's decision to wind down Cybertruck production could affect its stock performance. Investors will assess the company's ability to shift towards the Cybercab and its broader robotaxi strategy. The automotive sector may also react to changes in consumer preferences and production capabilities. Watch for updates on Tesla's production plans and any news about the Cybercab's launch timeline.
Based on reporting by: businessinsider.com, businesstimes.com.sg