Tesla plans to wind down Cybertruck production at its Texas factory around the middle of 2027 to make room for more Cybercabs, Elon Musk said on Friday, signalling another important shift towards autonomous transport.
The announcement raises questions about demand for the electric pickup and whether Tesla can earn more from robotaxis than conventional vehicle sales. Musk did not say whether Cybertruck production would move elsewhere or end entirely.
Tesla stock (NASDAQ: TSLA) closed at $343.69 on Thursday, down 10.77% amid a broader technology sell-off, before the announcement.
The manufacturing decision adds another test for investors betting on the company’s autonomous-driving ambitions.
Elon Musk’s Cybertruck plan reshapes Gigafactory Texas
Musk said on X that production of the stainless-steel pickup would be wound down at Tesla Gigafactory Texas around mid-2027, freeing capacity to increase Cybercab production. Tesla has not identified another site for Cybertruck assembly or provided a revised production target.
That distinction matters, as the decision concerns one factory, rather than a confirmed worldwide withdrawal of a model launched in late 2023.
Tesla’s third-quarter shareholder update listed installed annual capacity exceeding 125,000 vehicles each for Cybertruck and Cybercab in Texas.
Installed capacity measures what production lines are designed to support, not how many vehicles are being built or sold.
The company began operating Cybercabs within its Austin robotaxi fleet in September. The two-seat vehicles lack conventional steering wheels and pedals, reflecting Musk’s ambition to build a transport service around autonomous driving.
Reusing factory space could speed that expansion without requiring an entirely new plant. Texas also builds the Model Y, its mass-market SUV.
But higher manufacturing capacity will only create value if Tesla can deploy the vehicles reliably and attract paying customers.
Tesla Cybertruck production faces a demand question
Cybertruck’s unusual design attracted intense interest when deliveries began, but the pickup has faced recalls, quality complaints and repeated price changes amid growing electric-pickup competition. Tesla’s latest sales figures make the commercial picture harder to ignore.
Third-quarter deliveries in its Other Models category fell 48% to 8,295 from 15,933 a year earlier. Production in the category declined 40% to 7,004, even as Tesla delivered 486,532 vehicles overall.
Those figures do not establish Cybertruck sales. Tesla groups the pickup with other vehicles and does not disclose its deliveries separately.
Nevertheless, the decline raises questions about how efficiently existing manufacturing lines are being used.
Morningstar analyst Seth Goldstein wrote in September that Tesla’s Cybercab launch event lacked guidance on the “timeline for Cybercab production” and manufacturing costs. His assessment predates Musk’s latest announcement but highlights the information investors still need.
A shift towards Cybercab might improve factory utilisation. It could equally replace one uncertain demand outlook with another if robotaxi deployment proves slower than expected.
Tesla stock today: Can Cybercab justify the gamble?
Tesla’s latest production decision comes as Wall Street debates how quickly spending on autonomy can become profitable. The company cut its 2026 capital expenditure forecast to roughly $20 billion from more than $25 billion in October.
Josh Gilbert, lead analyst at eToro, told Reuters on October 22 that reduced spending raised doubts for a company “priced on Cybercab and Optimus,” Tesla’s humanoid robot project.
Dan Ives of Yorkville Ives offered the bullish counterpoint. In a research note, he maintained an Outperform rating and $500 price target, calling Tesla “one of the clearest ways to own physical AI”.
Tesla aims to begin delivering Cybercabs to external customers this year, but expansion faces federal safety scrutiny because the vehicles lack traditional driving controls.
Regulatory approval, software performance, operating costs, and pricing per ride remain important obstacles.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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