Tesla to wind down Cybertruck production as Elon Musk focuses on robotics and AI

Decision made in order for factory in Texas to be used for Cybercab, the carmaker’s self-driving taxi

Elon Musk has announced that Tesla will wind down production of its Cybertruck, marking the end of a failed effort to take a chunk of the lucrative market for pickups in the US.

The billionaire chief executive said production of the car would stop in about the middle of next year at the company’s factory in Texas in order to use the plant for the Cybercab, its self-driving taxi.

Musk did not say whether Tesla had plans to produce the vehicle in another factory, although that would probably require significant investment for the specialised tooling needed to make it.

Musk has pinned hopes for Tesla on robotics, artificial intelligence and an autonomous driving fleet rather than following the traditional carmakers’ approach of developing a steady stream of new models to entice private buyers.

It caps a tricky week for the world’s richest person, after Republican candidates he had backed with $446m (£332m) in donations lost in the US midterm elections. 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 AI boom.

Tesla shares fell by 11% on Thursday, while his AI and rocket launch company, SpaceX, dropped by 9%.

Tesla started deliveries of the Cybertruck in late 2023, after several long delays as the company tried to cope with the technical challenges of producing such an unusual vehicle – and particularly its steel shell.

The Cybertruck never made it on sale in Europe because it did not reach the required safety standards.

Even before sales began, Musk acknowledged how difficult it would be to make it a success. In a 2023 earnings call, he said: “We dug our own grave with Cybertruck,” and noted “enormous challenges” in increasing production and earning money from it.

Musk had said the company aimed to sell 200,000 Cybertrucks each year but it never approached that target. Tesla does not report sales of the trucks separately but in the third quarter of 2026 it delivered only 8,300 “other models”, which include the Cybertruck. The vast majority of its sales were the Model 3 saloon and the Model Y SUV, with 478,000 combined deliveries during the quarter.

Tesla also this year stopped production of its Model S and Model X, its premium saloon and SUV, amid declining sales for ageing products.

Tesla’s automotive focus has shifted to the Cybercab. Tesla has started offering paid trips in the car, which has space for two passengers and no steering wheel, in limited parts of Austin, Texas. However, it is unclear how quickly the company will be able to roll out the taxi service around the US or further afield amid close regulatory scrutiny of driverless car technology.

As well as the Cybercab, Tesla is still ramping up production of its long-delayed Semi electric lorry. Musk is also aiming to produce one other new model: the Roadster sportscar, which Musk revealed with a demonstration of a “flying car” version that used thrusters developed by SpaceX to drive up a curved ramp before flipping and landing. Tesla is aiming to start production of a road-bound version in 2028. Analysts do not expect the Roadster to make a large difference to Tesla’s future profits.

Beyond vehicles, the Texas factory will also be used to build Tesla’s Optimus humanoid robot.

Musk posted on X, the social network he owns: “Tesla will be winding down production of the Cybertruck at Gigafactory Texas around the middle of next year to make room for increased Cybercab production.”