Tesla
to Wind Down Cybertruck Production by Mid-2027;
Austin Plant to Focus on Autonomous Cybercab
Production of the electric trucks will
stop in the middle of 2027 to make room for increased production of its
autonomous ride-share vehicle, Elon Musk said.
·
Production closure: Tesla
CEO Elon Musk announced on 6 November 2026 that production of the Cybertruck at its Austin, Texas, factory will end around
mid-2027.
·
Reason: The factory's capacity will be
diverted towards increasing production of the Cybercab,
Tesla's autonomous ride-sharing vehicle.
·
Cybertruck's troubled
journey:
o
Unveiled by Elon Musk in 2019; production began in
2023.
o
Its unconventional geometric design attracted mixed
reactions.
o
Production faced several recalls due to software
glitches and hardware defects.
o
In March 2025, Tesla recalled nearly 46,000 Cybertrucks after discovering that an exterior trim panel
could detach.
·
Safety concerns: Families of two young adults who
died in a Cybertruck crash sued Tesla, alleging that
the vehicle's door design prevented occupants from escaping the burning
vehicle.
·
Poor sales performance:
o
Selling price: approximately $80,000–$100,000,
depending on customization.
o
Musk had initially projected annual sales of
250,000 units.
o
Actual U.S. sales were just over 20,000 units in
2025, down approximately 48% from 2024.
·
Stock market reaction: Tesla
shares rose approximately 5% following the announcement, as the
production phase-out had been anticipated.
·
Cybercab
production:
o
Production began at Tesla's Austin factory in July
2026.
o
Demonstrations commenced in September 2026.
o
The vehicle has no steering wheel or pedals,
reflecting Musk's ambition for fully autonomous transportation.
o
Designed for two passengers, with space for
luggage, golf clubs and scooters.
o
Intended for errands, commuting and other
ride-sharing services.
·
Competition: Tesla's Cybercab
will compete with Waymo, Alphabet's autonomous ride-hailing subsidiary,
which already operates approximately 4,000 autonomous vehicles offering paid
rides across 14 U.S. cities.
Key Takeaway: Tesla is
shifting its strategic focus from the commercially underperforming Cybertruck to autonomous mobility, betting on the Cybercab and driverless ride-sharing as its next major
growth opportunity.
Tesla
is winding down production of its polarizing Cybertrucks,
Elon Musk, the company’s chief executive, said in a social media post on
Friday, suggesting an end to the model.
Production
of the electric trucks at the company’s factory in Austin, Texas, will end
around the middle of next year to make room for increased production of the Cybercab, an autonomous ride-share vehicle, Mr. Musk wrote
in a post on X.
It
has not been a smooth road for the Cybertruck. Its hard-edge geometric design proved to be a
love-it-or-hate-it proposition, and production has been hampered by several
recalls because of software glitches and hardware issues. In March last year,
the company recalled nearly all its Cybertrucks,
about 46,000, after it found that an exterior trim panel was falling off.
The
parents of two young adults who died in a crash also sued the company last
year, claiming that the design of the doors made it impossible for their
children to escape the Cybertruck after it crashed,
trapping them in the burning vehicle.
The
announcement to end Cybertruck production was
expected, and Tesla’s stock rose around 5 percent after the news on Friday
morning.
Mr.
Musk first unveiled a prototype of the electric truck in 2019. “It’s not going
to be for everyone,” he said at the time.
Tesla
began production at its factory near Austin in 2023, selling them for about
$80,000 to $100,000, depending on customization. Before its launch, Mr. Musk
said he expected annual sales of 250,000 units. But the company sold only a
little over 20,000 Cybertrucks in the United States
last year, down about 48 percent from U.S. sales in 2024, according to data
from Kelley Blue Book, an automotive research company.
Tesla
said it began producing the Cybercab, an autonomous
vehicle with no steering wheel or pedal, at its factory in Austin in July. In
September, the company began demonstrations.
The
model embodies Mr. Musk’s longtime ambition to create
fully autonomous vehicles.
Tesla
has said on its website that people will be able to hail a Cybercab
and “use it for errands, commuting and more.” It will fit only two passengers
but still have room for things like luggage, golf clubs or scooters. The Cybercab is intended to compete with Waymo, a subsidiary of
Alphabet, the parent company of Google, which already has 4,000 autonomous
vehicles offering paid rides in 14 U.S. cities.