Tesla to Halt Cybertruck Production by Mid-2027 Due to Poor Sales

Key summary

Elon Musk announced via the X platform on Friday that Tesla will reduce Cybertruck production at its Gigafactory in Texas. The company plans to cease production of the vehicle by mid-2027 due to sales significantly below target. The original sales target set by Elon Musk was 250,000 units per year. Data from Kelley Blue Book shows that sales in the U.S. in the latest year were 20,237 units, a decrease of 48% from 38,965 units in 2024. The Cybertruck began deliveries in late 2023 and has faced challenges related to the design of its stainless steel body, which has sparked controversy, as well as safety concerns regarding pedestrian protection, preventing its sale in Europe. Additionally, Tesla has issued 11 recalls for the vehicle, according to NHTSA. Reducing Cybertruck production will allow the company to increase production of the Cybercab, a driverless taxi with two seats, no steering wheel, pedals, or side mirrors, which Musk aims to be the primary vehicle for a global Robotaxi network. Tesla began offering passenger transportation services with the Cybercab in Austin in September. However, it is still awaiting safety certification from U.S. regulatory agencies. According to the Texas Department of Motor Vehicles, of the more than 1,200 Robotaxis operating in the state, approximately 570 are Cybercabs. Andy Palmer, former CEO of Aston Martin, believes that halting production is a reasonable decision when the vehicle fails to meet sales targets. Analysts say that the electric pickup truck market in the U.S. is not yet very popular.