Tesla Ends Cybertruck Production After Selling Just 70,000 Units, Pivots to AI and Robotics

Tesla to Wind Down Cybertruck Production by Mid-2027

Tesla will stop producing its Cybertruck at Gigafactory Texas around the middle of next year, CEO Elon Musk announced on Friday1

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. The decision marks the end of what has become one of Musk's biggest product failures, as the futuristic pickup truck struggled with weak sales and multiple recalls since its launch in late 20231

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. The factory space will be repurposed to boost output of the Cybercab, Tesla's self-driving taxi that represents the company's strategic shift toward AI and robotics2

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Cybertruck Sales Fall Dramatically Short of Targets

The Cybertruck's performance fell catastrophically below expectations. Musk revealed that Tesla installed tooling to build 125,000 Cybertrucks annually but sold only 70,000 units over three years4

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. The company spent $2 billion on research and development and made just $100 million in gross profit from sales, resulting in a net project loss of $1.9 billion4

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. Cox Automotive estimates show Tesla sold 11,586 Cybertrucks from January to September, down 28 per cent from a year earlier, representing only a 1.6 per cent market share in EVs in the US1

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. Tesla delivered just 8,295 vehicles in its "other models" category, which includes the Cybertruck, in the third quarter, down 48% year-over-year5

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. This represents roughly a tenth of the 250,000 units per year that Musk originally projected1

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Production Issues and Market Challenges Plagued the Vehicle

The Cybertruck faced significant production issues from the start. Musk himself acknowledged the difficulties in a 2023 earnings call, stating: "We dug our own grave with Cybertruck," and noting "enormous challenges" in increasing production and earning money from it2

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. The vehicle never made it on sale in Europe because it did not meet required safety standards2

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. The truck's decisive design and several quality control issues played a major role in its failure3

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. The base price rose to around $60,000, versus the under-$40,000 starting price Tesla cited at the 2019 reveal4

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. Amid sluggish consumer demand, SpaceX became one of the biggest buyers of Cybertrucks from Tesla1

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Elon Musk Shifts Focus to Cybercab Robotaxis and Autonomous Vehicles

Tesla has begun offering paid trips in the Cybercab, which has space for two passengers and no steering wheel, in limited parts of Austin, Texas2

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. The company started commercial deployment of a small number of Cybercabs in Austin in September, with plans to expand operations to Dallas later this month4

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. Tesla began manufacturing the Cybercab at Gigafactory Texas earlier this year and had 45 of them registered in Texas as of the launch5

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. At the 2024 unveiling, Musk said he expects the Cybercab to cost around $30,0005

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. However, the National Highway Traffic Safety Administration opened an audit query into whether the vehicle was properly certified for public roads, as federal rules typically require cars to have human controls4

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. Musk has said material revenue from the Cybercab is unlikely before at least 20274

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Strategic Pivot Toward AI and Robotics Reshapes Tesla's Product Line

The Cybertruck is the third Tesla offering to be discontinued as the automaker shifts toward AI and robotics4

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. Tesla stopped production of its premium Model S sedan and Model X SUV earlier this year, handing that factory space over to the Optimus humanoid robot1

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. Musk has said the group will focus on sales of AI-powered humanoid Optimus robots, self-driving Cybercabs, and the Semi Truck, as its traditional EV business comes under pressure from Chinese competitors1

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. Tesla began mass production of its long-awaited electric Semi Truck in April1

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. Without the Cybertruck, Tesla's consumer lineup consists primarily of the Model Y SUV and Model 3 sedan, with 478,000 combined deliveries during the third quarter2

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. Wes Morrill, the Cybertruck's lead engineer, posted: "Cybertruck was an incredible technology development platform and lives on through Cybercab"1

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Potential SpaceX Merger Could Reshape Musk's AI Empire

The strategic shift comes as Musk weighs combining Tesla with SpaceX, which absorbed his AI company xAI earlier this year5

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. Both companies' boards have formed special committees of independent directors to evaluate a merger, which would bring rockets, satellites, AI models, robots and cars under one roof5

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. A merger would also create a Bitcoin treasury behemoth, combining SpaceX's 18,712 BTC and Tesla's 11,509 BTC for a total of 30,221 BTC, worth roughly $2.3 billion at current prices5

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. Shares in Tesla have fallen 15 per cent since the Republican Party suffered heavy losses in the US midterm elections, reflecting voter anxiety about the rise of AI and Big Tech1

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. The paper value of Musk's fortune fell by $113bn after the extent of the rout became clear, as stock market investors questioned whether a Democrat-led Congress could slow the pace of the artificial intelligence boom2

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