Tesla to halt Cybertruck production for driverless robotaxi development

Tesla CEO Elon Musk announced that production of the vehicle at the Texas factory will cease mid-next year to make way for the construction of Cybercab robotaxis, which lack steering wheels and pedals.

The Tesla Gigafactory in Texas is the sole facility producing the Cybertruck, characterized by its thick, stainless steel body.

While Musk’s wording left open the theoretical possibility of relocating production to another facility, this would likely involve significant effort. The Cybertruck has not proven to be a bestseller.

Musk initially projected a production capacity of up to 250,000 Cybertrucks per year at the peak of expansion. Tesla does not disclose sales figures for the model, but experts estimate that sales are significantly lower than initially anticipated.

Barclays analyst Dan Levy, according to Bloomberg, estimates the current annual production at around 20,000 vehicles, well below a capacity of 125,000 units.

When Elon Musk unveiled the Cybertruck in 2019, he presented it as a radical reinvention of the pickup truck, boasting futuristic design, exceptional robustness, and impressive performance. An initial price of $39,900 and promises of long ranges fueled high expectations.

However, later-offered models carried significantly higher price tags, and the angular stainless steel vehicle remained a niche product.

The decision to consider ending production is due to the Cybertruck’s high cost and complex manufacturing process, combined with a limited market for electric pickup trucks. Delays, recalls, and the gap between initial promises and the final available versions have also weighed on the project.

Tesla must also allocate capital and management attention to robotaxis, autonomous driving, and the humanoid robot Optimus.

Analysts have recently expressed caution, citing pressure from rising expenses and investments, as well as a weaker automotive business. Goldman Sachs described the valuation as demanding, while Truist warned that increased AI spending could impact margins and cash flow.

Analysts at China Renaissance Securities anticipate approximately 1.8 to 2.0 million vehicle sales in 2026.

A positive development is the planned integration of the new AI5 chip into Optimus in April 2027. Analyst Yiming Wang stated that this is crucial for controlling the many degrees of freedom of humanoid robots, and his price target is $336.