Tesla to Wind Down Cybertruck Production in Texas for Cybercab
Elon Musk said Tesla will wind down Cybertruck production at its Texas gigafactory around mid-2027 to make room for Cybercab robotaxi output.
Tesla (TSLA) CEO Elon Musk said Friday the company will wind down Cybertruck production at its Gigafactory Texas around the middle of 2027 to make room for increased Cybercab robotaxi output. Shares rose 4.2% in delayed trading.
Musk made the announcement in a post on X early Friday morning. The Cybertruck is exclusively produced at the Texas plant, alongside the Model Y and the two-seat Cybercab. Musk did not say whether Cybertruck production would move to another facility or end entirely. When a user called the update an end of an era, Musk replied that the Cybertruck fleet will be around for a long time and called it the best vehicle Tesla has ever made.
The decision marks a retreat from one of Musk's signature projects. He unveiled the Cybertruck in 2019 and predicted annual sales of 250,000 units. According to Cox Automotive, Tesla sold an estimated 20,237 Cybertrucks in the U.S. last year, down 48% from 38,965 in 2024. The truck has also faced quality problems, with 11 recalls recorded by the National Highway Traffic Safety Administration.
Tesla began delivering the Cybertruck in late 2023 after years of delays. The vehicle's specifications fell short of early promises in some cases, and its polarizing design drew a niche following without reaching mass-market sales.
The Cybercab, a two-seat robotaxi with no steering wheel or pedals, is central to Tesla's pivot toward AI and robotics. Musk has said the company would produce the Cybercab in greater numbers than all its other vehicles combined. The robotaxi only entered production earlier this year, and Tesla has listed installed capacity of more than 125,000 units. About 570 of the more than 1,200 Tesla robotaxis operating in Texas are Cybercabs, with the rest mainly Model Y vehicles, according to the state's Department of Motor Vehicles.
Tesla began offering paid rides in a small fleet of Cybercabs in Austin in September. The Cybercab still faces regulatory scrutiny: the NHTSA opened an audit in September to review Tesla's self-certification that the vehicle meets federal motor vehicle safety standards. Cybertruck lead engineer Wes Morrill said in a post on X that the Cybertruck was an incredible technology development platform and lives on through Cybercab.
What it means for Tesla
The wind-down frees capacity at Gigafactory Texas for the Cybercab at a time when Tesla is betting its future on autonomous driving and robotics rather than electric pickups. The move also follows Tesla's decision earlier this year to halt Model S and Model X production in California to make room for Optimus humanoid robots.
What remains unclear is whether the Cybertruck will be produced at any other facility or phased out completely. Tesla did not immediately respond to a request for comment.