Tesla to End Cybertruck Production in 2027 as Musk Prioritizes Robotaxi Expansion

Tesla will wind down production of its Cybertruck pickup from the middle of next year, bringing an end to the electric vehicle's four-year production run as the company reallocates factory capacity to its Cybercab robotaxi programme.

Chief executive Elon Musk announced the decision on Friday in a post on X, saying the Texas gigafactory would stop producing the angular electric pickup to make room for the robotaxi.

The decision follows weaker-than-expected sales of a vehicle that generated significant attention before its launch but struggled to translate early enthusiasm into sustained demand. The Cybertruck also became a polarizing symbol of Tesla and Musk's public profile, attracting both a dedicated following and widespread ridicule.

Tesla shares edged higher in premarket trading on Friday after falling sharply over the previous few days amid concerns about the political implications of Democratic victories in Texas and other states, as well as a broader selloff in artificial intelligence-related stocks.

The Cybertruck's discontinuation marks a significant reversal for a vehicle that Musk once expected to become a major contributor to Tesla's sales. The company received more than one million reservations before the truck's launch in 2023, following years of delays. Musk initially projected annual sales of at least 250,000 units.

However, its distinctive trapezoidal design, stainless-steel exterior, and higher-than-expected price limited its appeal among mainstream buyers.

Tesla sold approximately 20,000 Cybertrucks last year, according to Cox Automotive data, and has shipped around 16,000 so far in 2026. Those figures remain far below Musk's initial expectations.

The Cybertruck was one of Tesla's most ambitious attempts to challenge established vehicle designs. Its sharp angles and stainless-steel body attracted considerable attention, helping it build a following among Tesla enthusiasts even before deliveries began.

Some owners embraced the vehicle's unconventional design in unusual ways, including converting their trucks into mobile pizza ovens. Others organized informal campaigns to help the Cybertruck meet Europe's demanding vehicle regulations.

But the same design that generated publicity also made the vehicle a target of criticism and vandalism. Its appearance became closely associated with Musk's controversial public image, particularly as opposition to his involvement in the US government's Department of Government Efficiency (DOGE) programme spread.

Early this year, Cybertruck owners decried the rate of vandalism and abuse amid backlash against Musk's government cost-cutting activities.

The vehicle's commercial difficulties were compounded by the gap between its initial market expectations and actual deliveries. More than one million reservations created expectations of substantial demand, but reservations did not necessarily translate into completed purchases. The eventual sales figures highlighted the difficulty of turning a highly publicized product launch into a mass-market business.

Wes Morrill, Tesla's Cybertruck lead engineer, confirmed the production decision in a separate post on X, describing the vehicle as a four-year technology development programme.

"Cybertruck was an incredible technology development platform and lives on through Cybercab. Thanks to everyone who contributed to making the future looking like the future," Morrill wrote.

The truck also found buyers among Musk's other businesses. SpaceX purchased $131 million worth of Cybertrucks last year for use as support vehicles, making it one of the vehicle's largest customers.

Responding to a post on Friday announcing the discontinuation, Musk said: "True, but the Cybertruck fleet will be around for a long time."

Tesla Shifts to Robots and Autonomous Vehicles

The decision to end Cybertruck production is part of a wider reorganization of Tesla's manufacturing priorities as Musk directs more resources towards autonomous transportation and humanoid robotics.

Earlier this year, Tesla discontinued its Model S and Model X premium electric vehicles to free up factory space for production of its Optimus humanoid robot. The move signaled a shift away from some of the company's established vehicle lines towards businesses Musk believes could become larger sources of future growth.

Tesla is gradually expanding its robotaxi service, which now operates in multiple cities across Texas and Florida. The Cybercab is central to that effort, with the company preparing to use the vehicle as part of its longer-term autonomous transport ambitions.

Musk told investors last month that Optimus production had begun, with deliveries to customers expected by the end of next year. The company has presented the humanoid robot as another major business opportunity, although large-scale commercial deployment remains a significant operational challenge.

Tesla's changing priorities have also fueled speculation about a possible combination with SpaceX. The company's board is weighing a potential merger between the two businesses, which would bring electric vehicles, autonomous transport, robotics, rockets and space infrastructure under one corporate structure.

The Cybertruck's exit therefore comes as Musk attempts to reposition Tesla beyond its traditional identity as an electric vehicle manufacturer. The company is increasingly directing factory space, capital and management attention towards businesses that have yet to demonstrate the same level of commercial scale as its vehicle operations.

The timing is also difficult for Musk personally. Tesla and SpaceX shares fell sharply during Thursday's market selloff, wiping approximately $80 billion from his fortune, according to the Bloomberg Billionaires Index. His estimated wealth declined to $785 billion.

For Tesla, ending Cybertruck production closes a chapter that began with enormous expectations but delivered a much smaller market than initially projected. The company is now betting that robotaxis and humanoid robots can justify the factory capacity and investment being redirected away from conventional electric vehicles.