Tesla Chief Executive Officer Elon Musk has revealed plans to phase out production of the angular Cybertruck at the company's Texas Gigafactory next year, pivoting capacity toward scaled manufacturing of the Cybercab robotaxi. This strategic pivot highlights a major turning point for the electric vehicle manufacturer after its unconventional pickup encountered sliding demand and persistent manufacturing challenges.

Communicating via a social media post on Friday, Musk confirmed that Tesla will be winding down Cybertruck assembly at Gigafactory Texas around the middle of next year in order to clear space for accelerated Cybercab rollout.

The billionaire executive did not clarify whether assembly of the electric truck would halt completely, given that the Texas facility serves as the sole manufacturing hub for the vehicle.

Following the announcement, Musk reshared a statement from Cybertruck lead engineer Wes Morrill, who characterized the electric truck as an extraordinary technological proving ground that continues to endure through the Cybercab platform.

Originally showcased to the public in 2019, the Cybertruck finally commercialized in 2023.

Conversely, the Cybercab debuted in 2024 as a two-seat autonomous conveyance devoid of traditional steering wheels and pedals, with Tesla launching commercial autonomous fares in localized areas of Austin, Texas, in September of this year.

During Tesla's quarterly earnings call last month, Vice President of Vehicle Engineering Lars Moravy stated that consumer purchases of the autonomous cabs are targeted for late 2026, though Musk clarified that the vast majority of Cybercabs will remain company-owned assets integrated into its proprietary robotaxi fleet.

Tracing the Decline in Cybertruck Sales Performance

At Tesla's annual shareholder gathering in May 2023, Musk projected peak annual sales between 250,000 and 500,000 trucks once assembly operations reached full scale. Nevertheless, domestic deliveries for the electric pickup experienced a steep decline, dropping from 38,965 units in 2024 to 20,237 units in 2025, per data projections compiled by Cox Automotive’s Kelley Blue Book.

Downward trajectories persisted into the current year, with Kelley Blue Book reporting a mere 11,586 domestic Cybertruck purchases during the first three quarters of 2026, marking a 28% drop compared to the same timeframe last year. Although Tesla's third-quarter report omitted standalone delivery figures for the truck—instead bundling it into an "Other Models" category containing all variants excluding the Model 3 and Model Y—deliveries within this classification contracted by 48% to 8,295 units. Current quarterly documents indicate the Texas site retains an installed production capacity exceeding 125,000 Cybertruck units annually.

Amid these operational shifts, Tesla shares climbed 2.74% to $353.12 during premarket trading on Friday, rebounding from a 10.77% plunge recorded during a broader market downturn on Thursday.

When Tesla initially debuted the stainless-steel vehicle in 2019, management advertised a targeted entry price of $39,900 for a 2021 launch. Following successive postponements, deliveries commenced in late November 2023 alongside an increased base price of $60,990. Throughout its market lifecycle, the vehicle has battled multiple quality deficiencies and mandatory safety recalls. In 2024, authorities issued a recall over accelerator pedals susceptible to mechanical entrapment, which risked unintended acceleration.

Additionally, last year saw Tesla recall upwards of 46,000 units due to exterior stainless-steel panels detaching mid-drive. A further 173 units faced recall actions this April stemming from defective brake rotors capable of causing wheel stud separation.