Tesla CEO Elon Musk announced on X that the company will stop producing the Cybertruck next year and use the freed factory space to build two‑seat Cybercab robotaxis. The move comes as Tesla shifts more of its resources toward AI, robotics and autonomous ride services.
Background and sales performance
The Cybertruck was first announced in 2019 and long occupied a prominent place in Tesla’s product plans. Tesla delivered the first Cybertrucks to customers in late 2023, and at that time Musk had predicted annual sales of about 250,000 units. In reality, Tesla has sold only tens of thousands of Cybertrucks in total over the past three years.
The vehicle was delayed by roughly two years, partly due to the COVID‑19 pandemic. At the 2019 reveal, Tesla promised a base price under $40,000 and up to 500 miles of range; neither figure was achieved in the production model. By the time deliveries began in late 2023 the base price had risen to roughly $60,000 and the maximum range had fallen by over 100 miles compared with the early claims.
Shift toward robotaxis and other product changes
This announcement is the latest in a series of product discontinuations tied to Tesla’s robotica and AI ambitions. Earlier this year, Tesla decided to end production of the Model S sedan and Model X SUV and repurpose those factory areas to manufacture Optimus humanoid robots.
Over the past two months Tesla has been putting Cybercabs on the streets of Austin, Texas, and the company says there have been no major incidents to date. Tesla plans to expand Cybercab operations to other cities, starting with Dallas later this month. Tesla also operates robotaxi versions of the Model Y in Austin, Houston and Dallas, as well as in three cities in Florida.
Market and political context
The Cybertruck’s polarizing design and higher‑than‑expected price have weighed on demand. Additionally, political developments affected the model’s public profile: in 2024, the Cybertruck’s first full year of sales, Elon Musk became a major financial backer of Donald Trump, which made the highly visible vehicle a target for protesters. Tensions continued into 2025 as Musk led the so‑called Department of Government Efficiency, an effort that resulted in the firing of thousands of federal workers.
Implications
Ending Cybertruck production next year will have immediate implications for current buyers and orders, and signals Tesla’s broader strategic reorientation toward autonomous vehicle services and robotics. The company is reallocating factory space to products it sees as central to its future business model: robotaxis and humanoid robots.
Summary
Musk’s announcement that Cybertruck production will cease next year and that capacity will be converted to Cybercab robotaxi production reflects Tesla’s pivot from traditional vehicle lines toward AI‑driven services and robotics, following disappointing Cybertruck sales since late 2023.
