Tesla has announced plans to discontinue Cybertruck production at its Texas manufacturing facility around the middle of next year, with the facility being repurposed for increased production of the Cybercab autonomous taxi vehicle.
Elon Musk, Tesla’s chief executive, indicated the company intends to pivot away from traditional automotive development toward autonomous driving technology, robotics, and artificial intelligence. The Cybertruck, which began customer deliveries in late 2023 following extended development delays, failed to achieve anticipated sales volumes. Musk acknowledged in a 2023 earnings call that the vehicle presented “enormous challenges” in production scaling and profitability. While the company initially targeted annual sales of 200,000 units, third-quarter deliveries of alternative models totaled only 8,300 vehicles, with the majority of Tesla’s revenue continuing to derive from the Model 3 sedan and Model Y SUV, which combined for 478,000 deliveries during the period.
The discontinuation follows Tesla’s earlier decision to halt production of the Model S and Model X premium vehicles due to declining sales. The Texas facility will be redirected toward manufacturing the Cybercab, a two-passenger autonomous vehicle currently operating in limited capacity in Austin with paid trip offerings. Tesla has not announced whether Cybertruck production will continue at alternative facilities, though such a transition would likely require substantial capital investment in specialized manufacturing equipment.
Beyond vehicles, Musk has positioned the Texas factory to also support production of Tesla’s Optimus humanoid robot. Additional vehicles in development include the Roadster sportscar, scheduled for production beginning in 2028, though analysts project limited impact on company profitability. The company is simultaneously expanding production of its long-delayed Semi electric truck. The strategic refocus reflects Musk’s stated priorities around autonomous technology and artificial intelligence rather than a continuous stream of new consumer models.
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