Tesla winds down Cybertruck production as Musk shifts focus to robotaxis

Tesla (NASDAQ: TSLA) is preparing to wind down production of its highly anticipated Cybertruck, marking a major setback for one of Elon Musk’s most ambitious automotive projects as the company shifts its focus toward autonomous driving and robotaxis.

In a post on X on Friday, Musk said Tesla would begin winding down Cybertruck production at its Gigafactory Texas facility around the middle of next year, freeing up factory capacity to manufacture more of its Cybercab robotaxis.

“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,” Musk wrote.

Shares of Tesla gained 5% intraday Friday following the news.

The announcement raises questions about the future of the futuristic electric pickup, which was once expected to become a major growth driver for Tesla. It remains unclear whether the company plans to move Cybertruck production to another facility or discontinue the vehicle altogether. Its Austin factory is currently the only known Tesla facility equipped to manufacture the truck’s specialized components.

From Million-Dollar Hype To A Major Disappointment

When Musk unveiled the Cybertruck in 2019, he presented it as a revolutionary pickup that would challenge traditional manufacturers with its unconventional stainless-steel design, futuristic appearance and impressive performance.

Investor and consumer interest initially appeared enormous. Tesla reportedly accumulated more than a million reservations, while Musk projected the company could eventually sell around 250,000 Cybertrucks annually.

Reality, however, has been considerably less impressive.

The vehicle faced years of development delays before finally reaching customers in late 2023. Its launch was accompanied by controversy, including a widely publicized demonstration in which a metal ball shattered one of the supposedly armored windows.

The Cybertruck also arrived at considerably higher prices than initially promised, limiting its appeal to mainstream pickup buyers.

Sales have struggled to gain traction. Tesla sold just 20,237 Cybertrucks in the U.S. in 2025, down 48% from 38,965 the previous year. The vehicle has also faced multiple recalls and quality-control problems.

The combination of high prices, a polarizing design and a relatively narrow market for electric pickup trucks has made it difficult for Tesla to turn the Cybertruck into the mass-market success Musk envisioned.

Musk’s Bigger Bet Is On Cybercab

The production shift highlights how dramatically Tesla’s priorities have changed.

Rather than expanding its traditional electric vehicle lineup, Musk is increasingly betting the company’s future on artificial intelligence, autonomous driving and robotics.

At the center of that strategy is the Cybercab, a purpose-built two-seat autonomous vehicle designed to operate without a steering wheel or pedals as part of Tesla’s planned robotaxi network.

Tesla has already begun rolling out paid Cybercab rides in Austin, Texas, and Musk envisions eventually building a large fleet of driverless vehicles that could generate recurring revenue through autonomous transportation services.

The challenge is turning that vision into a commercially viable business. Tesla still faces significant regulatory and technological hurdles before fully autonomous vehicles can operate broadly without human supervision.

For investors, the Cybertruck wind-down is another indication that Tesla is moving away from its identity as a traditional automaker and toward Musk’s vision of an AI and robotics company.

The question now is whether the Cybercab can deliver the commercial success that the Cybertruck ultimately failed to achieve.