Cars

Tesla Winds Down Cybertruck Production for Cybercab

Tesla Winds Down Cybertruck Production for Cybercab

By Ahmed Abdelsalam

Tesla will wind down production of its Cybertruck at the company's Texas gigafactory to make room for increased output of the newly launched Cybercab robotaxi, Chief Executive Elon Musk said in a post on X. The move marks the end of a vehicle that Musk once called the "best vehicle Tesla has ever made" but which struggled with safety criticism, recalls and disappointing sales.

Production Challenges and Poor Sales

The Cybertruck was unveiled in 2019 and began customer deliveries in late 2023. Musk had predicted annual sales of 250,000 units, but Kelley Blue Book data shows only 20,237 Cybertrucks were sold in the United States last year, a 48% drop from 38,965 in 2024. Wes Morrill, the Cybertruck's lead engineer, referred to the vehicle in the past tense in response to Musk's announcement.

Safety Concerns and Recalls

The truck's sharp-edged stainless-steel design drew criticism for posing risks to other road users and prevented it from gaining safety approval in many markets, including Europe where pedestrian-impact regulations effectively barred its sale. The model also faced multiple recalls after launch.

Shift to Robotaxi Ambitions

Musk said the production wind-down would free capacity for the Cybercab, a vehicle with butterfly doors and no steering wheel, pedals or mirrors that is central to Tesla's push to become an AI and robotics company. Tesla began offering paid Cybercab rides in Austin in September, though U.S. safety regulators are still reviewing its compliance with federal standards.

Analyst Perspectives

Former Aston Martin CEO Andy Palmer called the decision rational, noting the Cybertruck was not meeting its targets. Analyst Felipe Munoz said electric pickups from Ford and others have also flopped in the U.S., but the Cybertruck's design limited its prospects in markets where EVs are more popular.

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