By Sohaib Shams
Tesla will cease production of its Cybertruck electric pickup around mid-2027 to allocate factory capacity for the Cybercab, an autonomous ride-share vehicle, Chief Executive Elon Musk announced Friday in a post on X.
Production shift to autonomous vehicle
The Cybercab, which lacks a steering wheel or pedals, began production at Tesla's Austin, Texas factory in July. The company started demonstrations in September. Musk said the move will make room for increased output of the autonomous vehicle, which is designed to compete with Waymo's fleet of self-driving cars already operating in 14 U.S. cities.
Cybertruck challenges
The Cybertruck's angular design polarized buyers, and the model faced multiple recalls. In March 2025, Tesla recalled nearly 46,000 vehicles after an exterior trim panel risk was identified. A lawsuit filed by the parents of two young adults who died in a crash alleged the door design prevented escape from a burning vehicle.
Sales fall short of targets
Tesla sold just over 20,000 Cybertrucks in the United States last year, a 48 percent drop from 2024, according to Kelley Blue Book data. Musk had originally projected annual sales of 250,000 units. The trucks were priced between $80,000 and $100,000.
Market reaction
Tesla shares rose about 5 percent following the announcement. The Cybercab is intended for ride-hailing services, allowing users to hail the two-passenger vehicle for errands and commuting.