Elon Musk to Axe Tesla Cybertruck Production by 2027 to Focus on Robotaxis
Tesla to Wind Down Cybertruck Production by Mid-2027 After Plunging Sales
Tesla will wind down production of the Cybertruck around the middle of 2027 at its factory outside Austin, Texas. Elon Musk confirmed the wind-down on X, noting the move will clear factory space for increased production of the company’s autonomous Cybercab robotaxi. The decision marks an unceremonious conclusion for the heavy, angular electric vehicle introduced in late 2023.
Sales for the stainless-steel vehicle dropped sharply following its initial rollout. According to automotive data platform Kelley Blue Book cited by ABC News, Tesla sold 20,237 Cybertrucks in the US last year, representing a 48 per cent decline from 38,965 units in 2024. SMH.com.au reported that sales through the end of September dropped another 28 per cent.
Tesla will be winding down production of the Cybertruck at Gigafactory Texas around the middle of next year to make room for increased Cybercab production
When production started in 2023, Elon Musk predicted annual sales of 250,000 units. Former Aston Martin CEO Andy Palmer told ABC News that the vehicle failed to hit commercial targets. Fred Lambert, writing for Electrek in an article covered by News.com.au, estimated that Tesla sold only 7,000 to 8,000 units in the third quarter of 2026, capturing roughly 12 per cent of targeted volume and potentially losing billions on the experiment.
Analysts Dispute Space Constraints Drove Austin Plant Shutdown
The Austin facility remains the only plant equipped to build the specialized components for the heavy pickup. While Elon Musk attributed the closure to making room for Cybercab manufacturing, industry analysts disputed that space constraints were the primary driver. Electrek argued that the Austin factory floor spans more than 10 million square feet and the Cybertruck line runs at about a quarter of its installed capacity.
Controversy dogged the vehicle from its 2019 unveiling. The National Highway Traffic Safety Administration recorded 11 recalls for the model since late 2023, requiring both physical repairs and over-the-air software updates, as reported by ABC News. Market acceptance was further limited by the sharp-edged design, which restricted sales in international regions like Europe, and by political realignments that alienated portions of the consumer base, according to SMH.com.au.
Corporate fleet purchases provided temporary support. SpaceX bought Cybertrucks worth $131 million from Tesla in 2025 at list price, according to an initial public offering filing cited by ABC News. Both SpaceX and xAI took delivery of hundreds of vehicles as demand among retail buyers slowed.
Shifting Capital Toward Autonomous Fleets
Tesla is pivoting resources toward robotics and autonomy as Chinese electric-vehicle manufacturers capture broader market share. Around 570 of the more than 1,200 Tesla robotaxis operating in Texas are Cybercabs, with the remainder consisting mostly of Model Y vehicles, according to the Texas Department of Motor Vehicles data cited by ABC News.
Production will wind down through the middle of 2027. Market observers note that while the vehicle generated significant public attention, commercial realities ultimately forced the automaker to reallocate its manufacturing capacity toward autonomous platforms.