Tesla is set to cease Cybertruck production at its Gigafactory in Texas by mid-2027, as stated by CEO Elon Musk on Friday. This decision follows years of disappointing sales for a vehicle once hailed as a strong competitor to traditional pickup trucks.
This marks a significant retreat for Musk from a project he has been passionate about. In a post on X, he indicated that the production halt would allow Tesla to increase output of the Cybercab, a robotaxi that is crucial to the company’s goals in autonomous driving, although it has yet to demonstrate commercial viability.
The announcement follows a challenging week for Musk, who expended nearly $500 million on political campaigns that resulted in minimal success during Tuesday’s U.S. midterm elections, with many of the Republican candidates he supported losing their races.
Additionally, the combined market capitalization of his companies is projected to decline by over $180 billion this week.
A Tesla Cybertruck near the White House last year. (Leah Millis/Reuters)
It remains unclear if production of the Cybertruck will be relocated to another site or completely phased out, as the Austin facility is currently the only Tesla plant capable of producing the specialized parts for the heavy, uniquely shaped model.
Musk referred to the Cybertruck as the “best vehicle Tesla has ever made” in response to a user on X and described the cessation of its production as the “end of an era.”
Tesla has been increasingly directing its focus toward robotics and autonomous technologies, a shift that analysts argue comes at the cost of the electric vehicle sector it helped establish, particularly as Chinese competitors continue to advance.
The U.S.-based electric vehicle manufacturer began delivering the Cybertruck to customers in late 2023. According to data from Kelley Blue Book, only 20,237 Cybertrucks were sold in the U.S. last year, reflecting a 48% decrease from 38,965 units in 2024. When production began in 2023, Musk had forecasted annual sales of 250,000 units.
Former Aston Martin CEO Andy Palmer stated, “It doesn’t make sense to continue when it isn’t achieving its goals.” He added, “Every rational auto executive would agree.”
He noted, “While it may not significantly impact Tesla’s financials, the numbers are telling.”
Last year, Musk’s SpaceX was one of the largest buyers, acquiring $131 million worth of Cybertrucks from Tesla in 2025 at list prices, as per its IPO documentation.
Tesla showed off its upcoming entry into the electric truck market in a lavish launch event last night. An attempt to demonstrate its “bulletproof” glass using a metal ball backfired, however, as the windows shattered. Twice.
‘Cybertruck won’t go, can’t go’
Since its launch in 2019, the Cybertruck has sparked controversy. Traditional pickup enthusiasts ridiculed its angular design, while safety experts warned it could struggle to gain approval in significant markets like Europe.
The launch event itself was overshadowed when Musk attempted to showcase the vehicle’s shatterproof windows by throwing metal balls at them, resulting in significant cracks in two of the windows.
At the Cybertruck’s official release in 2023, Musk promoted it as a cutting-edge alternative to pickup trucks from brands like General Motors and Ford, asserting, “finally, the future will look like the future.”
However, the model has not lived up to those ambitions. Since its sale began in late 2023, Tesla has issued 11 recalls for the Cybertruck, as reported by the National Highway Traffic Safety Administration. Some vehicles needed physical repairs, while others were remedied through over-the-air software updates.
Elon Musk’s car company Tesla debuted its second generation Roadster, which includes a set of cold gas thrusters and a “multi-mode” suction system that can fling the car in the air for short spurts and spin the vehicle mid-flight.
Automotive analyst Felipe Munoz remarked that despite the Cybertruck being labeled a failure due to its low sales, electric pickups from Ford and other manufacturers have also struggled in the U.S. market.
“All of them lost the competition because electric pickups aren’t popular in the U.S.,” Munoz noted.
However, the Cybertruck’s sharply designed stainless steel structure has limited its potential in regions like Europe, where electric vehicles are gaining popularity. Due to regulations concerning pedestrian safety, obtaining approval for Europe has proven impossible.
Palmer stated, “In any area where crash regulations include pedestrian impact, that Cybertruck won’t go, can’t go.”