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Tesla to wind down Cybertruck production in Texas next year to ramp Cybercab, Musk says
Developing story first seen 2 hours ago
Tesla plans to wind down Cybertruck production at its Texas factory next year as it increases production of the Cybercab, Elon Musk said. The shift comes after the electric pickup drew a niche following but failed to reach mass-market sales, putting its future role in Tesla’s manufacturing plans in question.
Tesla does not publish sales by model, but Cox Automotive estimated US Cybertruck sales at 20,237 last year, down 48% from 38,965 in 2024. Musk had predicted annual sales could eventually reach 250,000; SpaceX bought $131 million worth of the trucks last year. The 2024 model was subject to 11 voluntary recalls, covering issues including an accelerator pedal that could become trapped and faults that could cause a loss of drive power.
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In short
- Tesla plans to wind down Cybertruck production in Texas next year.
- The factory will ramp up production of the Cybercab.
- Estimated US Cybertruck sales fell 48% last year.
How this story developed
- 15 minutes ago Tesla plans to wind down Cybertruck production at its Texas factory next year as it ramps up production of the Cybercab, Elon Musk said.
- 24 minutes ago Tesla plans to wind down Cybertruck production at its Texas factory next year as it increases production of the Cybercab, Elon Musk said.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Winding down Cybertruck production could be a sensible use of limited factory capacity if demand has fallen well short of earlier expectations. Expanding Cybercab production may better match Tesla’s future plans and allow it to focus investment and workers on products it expects to grow, while the Cybertruck’s recalls add to the case for reassessing its role.
The case against
Ending or sharply reducing Cybertruck production could disappoint customers who value the vehicle and weaken Tesla’s ability to serve a distinct pickup market. Sales estimates alone may not capture its longer-term potential, and redirecting factory capacity towards the Cybercab carries its own commercial risk if demand or production plans do not meet expectations.
Explained simply
Tesla is an electric vehicle company led by Elon Musk, and its Texas factory makes vehicles including the Cybertruck, a large electric pick-up. The Cybercab is a separate Tesla vehicle designed for driverless taxi services.
The Cybertruck attracted a dedicated group of buyers, but sales have been far below Musk’s earlier forecast of 250,000 a year. Tesla does not release sales figures for each model, so analysts estimate them; recalls have also drawn attention to the pick-up’s reliability and safety.
The production shift matters because Tesla is deciding how to use limited factory capacity as it develops new vehicles. The Cybercab’s role depends on the wider development of driverless transport, while the Cybertruck’s sales suggest it may remain a smaller part of Tesla’s business.