Tesla to End Cybertruck Production Next Year at Texas Gigafactory

Tesla will end production of the Cybertruck at its Texas Gigafactory next year. Elon Musk claims Tesla is ending production to make room for building Cybercabs, which use a much smaller 48 kilowatt-hour battery.

Details and Challenges

The Cybertruck has suffered from subpar sales driven by a divisive design, its maker's actions, and multiple recalls. The vehicle uses a massive 123 kilowatt-hour battery weighing about 1,600 pounds, which accounts for roughly a quarter of its total weight. This cancellation follows Ford ending production of the F-150 Lightning late last year and a three-row EV in 2024.

Market Shifts

Automakers are now introducing smaller electric vehicles and extended-range gas-powered models. Ford plans to launch the Fathom next year as a sub-$30,000 compact pickup, and startup Slate is launching a tiny electric pickup starting below $25,000. Rivian launched the R2 SUV this year with an 88 kilowatt-hour battery and has teased the even smaller R3. Smaller vehicles require lighter batteries, which lowers the cost of the most expensive EV component and helps automakers offer cheaper models when the average transaction price for a new EV is $55,800.

Context

Automotive industry trends often follow consumer demand and manufacturing costs, where reducing battery size directly cuts down the overall retail price of electric vehicles. Smaller battery packs also reduce pressure on the global supply chain for raw materials like lithium and nickel. This pivot reflects a broader industry move away from heavy luxury trucks toward practical commuter vehicles.