Tesla to Phase Out Cybertruck Production by Mid-Next Year Amid Weak Sales

Tesla has announced plans to gradually phase out production of the Cybertruck at its Texas facility by the middle of next year, citing sluggish sales and repeated safety recalls. CEO Elon Musk, who originally touted the futuristic electric pickup as an ultra-tough combat vehicle, revealed the decision in a post on X, explaining that the company will shift its manufacturing focus toward ramping up production of the Cybercab autonomous taxi.

Wes Morrill, who served as the vehicle's chief engineer, confirmed the transition on social media, noting that the Cybertruck served as an exceptional technology development platform whose innovations will live on through the Cybercab. First unveiled in 2019 and officially launched in 2023, the Cybertruck struggled to meet ambitious production goals and faced significant regulatory hurdles, falling short of Musk's initial projections of 250,000 to 500,000 units annually.

Market data from Cox Automotive indicates that Tesla sold just 11,586 Cybertruck units during the first nine months of the year, representing a 28% decline compared to the previous period. A substantial portion of early acquisitions came from SpaceX, another company led by Musk, with reports suggesting the two firms are even considering a merger.

Despite stepping back from the consumer pickup market, Tesla is pivoting toward commercial vehicles and automation. The company initiated production of its all-electric Semi truck in April, capitalizing on rising fuel costs following the conflict with Iran. Musk emphasized that future growth will center on humanoid robots, autonomous robotaxis, and heavy-duty electric trucks amid intensifying competition from Chinese manufacturers. Meanwhile, Tesla shares dropped by approximately 15% following the Democrats' victory in Tuesday's midterm elections, despite Musk having contributed over $200 million to Republican candidates.