Tesla to Discontinue Cybertruck as Musk Pivots to Robotaxi Production

A Strategic Shift in Priorities

Tesla is set to wind down production of its angular electric pickup, the Cybertruck, as the company shifts its focus toward the mass production of its dedicated robotaxi, the Cybercab. CEO Elon Musk confirmed the decision on Monday, noting that while the vehicle remains profitable, the opportunity cost of maintaining the complex Cybertruck production line is too high given the potential value of the Cybercab.

Musk emphasized that the decision is driven by the necessity to reallocate engineering talent, factory space, and supply chain resources. According to the CEO, the Cybercab is viewed as a vehicle that will “profoundly transform the world of terrestrial transport,” making it a higher priority for the company’s future roadmap.

Managing the Order Backlog

Despite the planned discontinuation, Tesla currently faces a significant challenge regarding its existing order book. Musk acknowledged that the number of outstanding orders for the Cybertruck “far exceeds” the company’s manufacturing capacity. Tesla intends to keep the production line running for approximately eight more months to fulfill as many orders as possible before the final shutdown.

However, Musk admitted that this will not be enough to satisfy all customers. “We will try to make as many as possible before shutting down the line in about 8 months, but will have to return deposits for a lot of people,” he stated. While the company continues to accept orders on its official website, the exact number of outstanding reservations remains undisclosed.

The Cybertruck’s Turbulent Market Performance

The Cybertruck, which first debuted in 2023, faced a difficult road to market. Initially, expectations were sky-high, with Musk once predicting annual sales of 250,000 units. In reality, the vehicle struggled to gain widespread traction. Tesla reported selling only 20,000 units in the United States throughout 2025, with sales reaching approximately 16,000 units so far in 2026.

Beyond production and sales hurdles, the vehicle became a lightning rod for controversy. During Musk’s tenure leading the Department of Government Efficiency (DOGE), the truck frequently became a target for vandalism and anti-Musk protests. Despite these challenges, the vehicle retains a dedicated cult following, with many fans taking to social media over the weekend to petition for the truck’s survival.

Tesla’s Broader Transition

The decision to axe the Cybertruck is part of a larger trend at Tesla, which appears to be moving away from conventional vehicle production to focus on autonomous technology and robotics. Earlier this year, the company discontinued its premium Model S and Model X vehicles to repurpose factory space for the development and scaling of its Optimus humanoid robot.

Musk has remained firm on the necessity of these trade-offs, noting that Tesla’s engineers can only manage a limited number of projects simultaneously. By streamlining operations, the company aims to clear the path for its next generation of transport and automation products.

Source: businessinsider.com