Tesla to halt Cybertruck production in Texas for robotaxi development

Tesla CEO Elon Musk announced on his platform X that the company plans to cease Cybertruck production at its Texas factory by mid-2027 to make room for another product.

It remains unclear whether the Cybertruck will be manufactured at a different facility or discontinued entirely. However, the Austin plant is currently the only Tesla facility capable of producing the specialized parts needed for the model.

Tesla has not yet commented on the announcement.

Musk described the production end as “the end of an era,” while also praising the Cybertruck as “the best vehicle Tesla has ever built.”

Designed with a futuristic aesthetic to compete with established pickup trucks from Ford and General Motors, the Cybertruck has struggled to gain traction, particularly in the US market.

Sales figures have been disappointing. Tesla does not separately report Cybertruck sales, instead grouping them with other models. The “Other models” category saw a decrease of roughly one-third in the third quarter, to just under 8,300 vehicles. In comparison, Ford sold approximately 562,000 pickups of its F-Series during the same period.

Industry data from Kelley Blue Book estimates around 20,000 Cybertrucks will be sold in 2025. Musk had previously projected an annual sales target of 250,000 vehicles.

“Given the weak sales figures, the production stop is consistent,” said Andy Palmer, former CEO of Aston Martin.

The move is expected to have a minimal impact on Tesla’s overall financial performance.

Beyond weak demand, Tesla has also faced quality issues and multiple recalls since the vehicle’s unveiling in 2019. The Cybertruck’s unconventional design also drew criticism, and it was not approved for sale in Europe due to safety concerns, specifically regarding pedestrian protection.

Musk intends to use the freed-up capacity in Texas to manufacture the Cybercab, a robotaxi lacking a steering wheel and pedals. This aligns with Musk’s broader plan to transform Tesla into a manufacturer of autonomous vehicles and robots.

The Cybercab is currently undergoing commercial testing in Austin, Texas, but the project faces regulatory hurdles. The US National Highway Traffic Safety Administration (NHTSA) has launched an investigation into Tesla regarding compliance with current regulations.