Tesla to Phase Out Cybertruck Production to Focus on Autonomous Cybercab

Tesla Inc. plans to phase out production of its Cybertruck electric pickup at its Texas assembly plant by mid-2025, reallocating factory capacity toward its autonomous Cybercab vehicle, Chief Executive Elon Musk announced.

The decision marks a significant turn for the vehicle, which was first unveiled in 2019 and touted as a key growth driver for the electric vehicle manufacturer. Following years of production delays, the Cybertruck officially reached customers in late 2023. However, high retail pricing starting above $90,000 and multiple safety recalls limited its adoption compared to high-volume models like the Model 3 and Model Y.

Estimated delivery data shows Cybertruck sales dropped sharply in recent quarters, falling far short of initial production targets of 250,000 to 500,000 units annually. Tesla does not separate Cybertruck delivery figures in its quarterly public earnings reports.

The manufacturing adjustment reflects Tesla's broader strategy to prioritize self-driving technology and robotaxi networks. The Cybercab, a two-seater designed without traditional vehicle controls like pedals or a steering wheel, began initial commercial testing in Austin, Texas, earlier this year. Tesla has also expanded robotaxi operations into additional cities in Texas and Florida.

The pivot to autonomous vehicles comes amid regulatory reviews. Federal highway safety officials opened an inquiry earlier this year into whether the Cybercab complies with standard safety rules. Meanwhile, Tesla faces increasing competition from established autonomous transport fleets already operating across several major U.S. markets.