Elon Musk: Tesla to end Texas Cybertruck production to make way for Cybercab

Winding down production means Tesla will gradually reduce and eventually end Cybertruck manufacturing at Gigafactory Texas around the middle of 2027. It does not necessarily mean the vehicle will disappear immediately. Tesla is changing how the factory’s available production space is used.

The main reason is capacity. Tesla wants to make more Cybercabs, its planned driverless robotaxis, at the Texas factory. Musk announced the change on X, saying Cybertruck production would wind down to make room for increased Cybercab output. The move follows weaker-than-expected Cybertruck sales and repeated recalls.

Tesla has not explained whether Cybertruck production will move to another facility or stop entirely. That leaves the model’s longer-term future uncertain. For now, the confirmed change concerns manufacturing at the Texas factory, while Cybercab production becomes a higher priority there.

Tesla sold 38,965 Cybertrucks in the United States in 2024, then 20,237 in 2025. That was a decline of 18,728 vehicles, or 48 percent. The figures show that demand weakened sharply after deliveries began in late 2023.

Musk had predicted annual sales of 250,000 vehicles around the start of production. The 2024 total reached only about 16 percent of that target. The 2025 total reached about 8 percent. These figures help explain why Tesla is reconsidering how much factory capacity the pickup should use.

The gap between expectations and actual sales is central to the production decision. Former Aston Martin CEO Andy Palmer told Reuters that continuing would not make sense if the vehicle was missing its targets. Tesla has not said whether Cybertruck production will continue elsewhere.

Tesla is replacing some Cybertruck capacity because the pickup has not generated the demand Musk expected. US sales dropped from 38,965 in 2024 to 20,237 in 2025. Repeated recalls and price changes also accompanied the weak performance. Using the space for another product may better match Tesla’s current priorities.

The replacement is the Cybercab, a two-seat vehicle designed for Tesla’s driverless robotaxi network. It has butterfly doors and no steering wheel, pedals, or mirrors. Tesla began offering paid Cybercab rides in Austin in September, making the vehicle part of an operating service rather than only a future concept.

The decision opens factory space for increased Cybercab output. About 570 of Tesla’s more than 1,200 Texas robotaxis are Cybercabs, according to the state’s Department of Motor Vehicles. However, the program faces regulatory scrutiny, including a federal safety audit opened in September.

A Cybercab is Tesla’s two-seat vehicle for autonomous ride services. Musk sees it becoming the company’s main autonomous vehicle within a broader robotaxi network. Tesla has already begun offering paid Cybercab rides in Austin, showing that the vehicle is being connected to a real transport service.

Its design differs sharply from a conventional car. The Cybercab has butterfly doors and no steering wheel, pedals, or mirrors. Those missing controls reflect its intended driverless operation. The vehicle is designed to carry passengers without a human driver controlling it in the usual way.

Cybercabs are becoming a manufacturing priority as Tesla winds down Cybertruck production at its Texas factory. About 570 of Tesla’s more than 1,200 robotaxis operating in Texas are Cybercabs. The program still faces regulatory scrutiny, including an audit of its federal safety compliance.

The Texas production wind-down does not establish the Cybertruck’s final fate. Tesla has only confirmed that manufacturing at Gigafactory Texas will decrease around mid-2027. The company has not said whether it will transfer production to another factory or end the model entirely.

That uncertainty matters because the Cybertruck is already missing Musk’s sales expectations. Tesla sold 20,237 in the US in 2025, down 48 percent from 2024. The vehicle has also faced 11 recalls since deliveries began, alongside repeated price changes. Those pressures make a large production expansion difficult to justify.

For now, the clearest consequence is that Texas factory space will be redirected toward Cybercab output. Musk called the decision the “end of an era,” while still describing the Cybertruck as Tesla’s best vehicle. Its longer-term future therefore remains unresolved.

Recalls can make a vehicle harder to sell because buyers may worry about reliability, repairs, or safety. Tesla issued 11 Cybertruck recalls after deliveries began. Some required physical repairs, while others used wireless software updates. Repeated price changes also made the vehicle’s value and positioning less stable as Tesla tried to sustain buyer interest.

The Cybertruck’s unusual design created another obstacle. Its angular stainless-steel body attracted attention, but its form limited access to markets with rules covering pedestrian impact. Andy Palmer said the vehicle could not go anywhere those crash regulations applied. That restricted potential sales beyond the United States.

The result was weak demand in its main market and fewer opportunities abroad. Tesla sold 20,237 Cybertrucks in the US in 2025, down 48 percent from 2024. Automotive analyst Felipe Munoz added that other electric pickups were also struggling in the US, so the challenge extended beyond Tesla.

An autonomous vehicle needs sensors, computing systems, and control software that can detect road users, understand traffic situations, choose safe actions, and control steering, braking, and speed. It also needs strong backup systems so a failure does not immediately create danger. These general technical requirements are established vehicle-safety principles, not details listed in the article.

Legally, a driverless robotaxi must meet applicable vehicle safety standards and receive permission to operate in the relevant jurisdiction. It must also demonstrate that its autonomous system can operate safely under approved conditions. The article specifically says the US auto safety agency is examining Tesla’s basis for certifying Cybercab under federal vehicle safety standards.

Cybercab rides are already paid services in Austin, but the robotaxi program remains under regulatory scrutiny. The article does not provide a complete checklist of technology, testing, certification, or operational requirements. Therefore, it confirms oversight and federal compliance questions without resolving whether every requirement has been met.