Tesla’s Cybertruck wind-down marks a sharp shift toward Cybercab

Tesla reallocates Texas capacity

Tesla is preparing to wind down Cybertruck production at Gigafactory Texas around the middle of 2027, a move Elon Musk said will create room for increased Cybercab production. The announcement, made by Musk on X, applies to the Austin factory, which is the only known Tesla plant equipped to build the Cybertruck; reporting did not establish whether production would move elsewhere or the model would be phased out entirely.

The decision is a reversal for one of Tesla’s most prominent vehicle programs. Musk previously described the Cybertruck as the company’s best vehicle, yet its U.S. sales fell to 20,237 in 2025 from 38,965 in 2024, according to Kelley Blue Book estimates. Musk had predicted annual sales of 250,000 when production began in 2023. Sales through September 2026 were down another 28%, according to Kelley Blue Book.

Demand and execution weighed on the pickup

The Cybertruck was unveiled in 2019 with a starting price of $39,900 and a planned 2021 launch. After several delays, customer deliveries began in November 2023, with the starting price rising to $60,990. The truck also recorded 11 recalls since entering the market, according to the National Highway Traffic Safety Administration, while Tesla reported 140 incidents in which occupants became trapped inside redesigned door handles.

Its unusual construction also constrained overseas demand. Former Aston Martin CEO Andy Palmer told Reuters that pedestrian-impact regulations make the truck unsuitable for some markets, while analysts cited by Reuters pointed to its high price and limited demand. Ford and other automakers have also struggled to sell electric pickups in the United States.

Cybercab remains an early-stage bet

Cybercab has entered production but remains a relatively small program. Tesla began offering paid rides with a limited fleet in Austin in September, and Cybertruck lead engineer Wes Morrill said the Cybertruck’s technology platform would live on through Cybercab. The company also faced an NHTSA audit opened in September over whether it properly self-certified the Cybercab for compliance with federal vehicle-safety standards.

The reallocation therefore shifts capacity from a pickup with established but disappointing sales toward a robotaxi program still scaling production whose regulatory compliance is under scrutiny. The reviewed reporting does not quantify the capacity benefit for Cybercab or establish how much of the wind-down reflects weak Cybertruck demand rather than other strategic considerations.

A narrower manufacturing focus

Tesla had reportedly installed capacity for more than 125,000 Cybertrucks annually at Gigafactory Texas. Ending production there around mid-2027 would leave the company with substantially less pickup-manufacturing exposure unless output is transferred. Model 3 and Model Y vehicles still account for the majority of Tesla’s sales as the company invests in robotaxis, AI infrastructure, robotics and energy storage.

The next observable test is Tesla’s execution of the mid-2027 wind-down and whether Cybercab output and paid service expand enough to justify the redirected Texas manufacturing capacity. No disclosed timetable establishes the scale of that expansion or its commercial result.

Industry and product implications