Tesla to Wind Down Cybertruck Production for Self-Driving Taxis

Tesla will wind down production of its Cybertruck vehicles at its Texas factory next year, according to Chief Executive Elon Musk. Musk stated that the decision is meant to make room for building self-driving Cybercab cars, though he did not clarify whether production will stop completely or move to another location. Meanwhile, the project's lead engineer Wes Morrill suggested on X that the vehicle is being discontinued, noting that it served as a technology development platform that lives on through the Cybercab. Musk later confirmed this by responding 'true' to a fan online, adding that the existing Cybertruck fleet will remain around for a long time. Tesla's stock rose 4.7% on Friday following the announcement.

Background

The angular stainless steel vehicle was always a passion project for Musk, who called it the best product Tesla has ever made as recently as April. However, the truck faced struggles from its public debut in 2019 when its unbreakable glass shattered during a live demonstration. Despite drawing 146,000 orders during development, the vehicle faced delays before launching in 2023. Sales reached 38,965 units before dropping to 20,237 vehicles in 2025, falling far short of Musk's earlier prediction of 250,000 annual sales. The truck also faced multiple safety recalls, including a 2025 recall affecting over 46,000 vehicles due to loose exterior trim. Pricing ranged from $61,000 for standard models to $102,000 for the Cyberbeast model introduced in 2026.

Context

Major automotive companies frequently shift their manufacturing focus from low-selling niche models to higher-potential future technologies like autonomous vehicles. Electric vehicle startups and established manufacturers alike must balance consumer demand, production costs, and regulatory safety standards to keep factories profitable. This decision reflects how companies often pivot resources toward new product lines when older models fail to capture broad market success.