Tesla will reduce production of its Cybertruck vehicles at its Texas facility next year, according to BBC News. Chief Executive Elon Musk indicated the move is intended to free up manufacturing capacity for the company's self-driving Cybercab vehicles, though he did not clarify whether production will cease entirely or relocate to another facility.
Wes Morrill, the project's lead engineer, suggested the vehicle is being phased out when he wrote on X: "Cybertruck was an incredible technology development platform and lives on through Cybercab." The announcement marks a significant shift for a vehicle that has been central to Musk's vision for Tesla, despite facing substantial commercial challenges since its 2023 launch.
The Cybertruck's distinctive angular design and stainless steel body initially generated considerable enthusiasm among Tesla enthusiasts. However, the vehicle has struggled to gain traction in the competitive U.S. truck market. Kelley Blue Book estimates show U.S. Cybertruck sales reached only 11,586 units during the first nine months of 2026, representing a 28% decline compared to the same period in 2025.
Why is Tesla shifting focus away from the Cybertruck?
Tesla is prioritizing the Cybercab, its autonomous vehicle platform, which has already begun production at Gigafactory Texas. Tesla's Q2 2026 update confirmed that Cybercab production commenced at the facility, with employee test rides on the factory campus beginning in July. The company has installed annual manufacturing capacity exceeding 125,000 vehicles for both the Cybertruck and Cybercab at the Texas location, but the decision to wind down Cybertruck production reflects a strategic reallocation of that capacity.
Shortly before Musk's announcement, Tesla raised U.S. Cybertruck prices by as much as 9% and discontinued orders for the entry-level Dual-Motor AWD trim, leaving only the Premium and Cyberbeast variants available for purchase. This pricing adjustment and model elimination suggest the company was already preparing to reduce Cybertruck availability.
How has the Cybertruck performed since its launch?
The vehicle's journey has been marked by both enthusiasm and setbacks. When Musk first introduced the Cybertruck to the public in 2019, he attempted to demonstrate the durability of its supposedly unbreakable glass by striking it with a steel ball. The glass shattered during the live demonstration, creating an embarrassing moment that became widely mocked online.
Despite this inauspicious debut, the Cybertruck generated 146,000 pre-orders while still in development. When the vehicle finally launched in 2023, it retained its unconventional design, which some admirers compared to vehicles "straight out of Blade Runner." Critics, however, were less charitable, with detractors calling it "ugly as sin."
The vehicle has also been plagued by quality issues. In 2025, Tesla issued a recall affecting more than 46,000 Cybertrucks due to concerns that trim components could detach. These manufacturing challenges, combined with disappointing sales performance, have undermined the vehicle's commercial viability.
What has Musk said about the Cybertruck?
Musk has consistently championed the Cybertruck as a transformative product. In March, he described it as "way more awesome than people realise," and in April, he called it the "best product Tesla has ever made to date." When a Tesla enthusiast lamented the vehicle's discontinuation on social media, Musk responded with the word "true" but added reassurance: "But the Cybertruck fleet will be around for a long time."
The CEO has also acknowledged pricing pressures. When discussing the vehicle with Wall Street analysts, he stated: "We need to make it at a price that people can afford." The base model launched at $61,000, while the advanced "Cyberbeast" variant introduced in 2026 carries a price tag of $102,000.
What happens next?
Musk's timeline indicates the Texas production wind-down will occur around mid-2027, though he has not specified whether Cybertruck manufacturing will shift to another facility or cease altogether. Gigafactory Texas is currently the only known Tesla facility equipped with the specialized manufacturing capabilities required for the Cybertruck's unique components, which may complicate any potential relocation.
The decision to prioritize the Cybercab reflects Tesla's broader strategic pivot toward autonomous vehicle technology. As the company allocates its manufacturing resources to this new platform, the Cybertruck—once positioned as a flagship product—appears to be transitioning from active production to legacy status within Tesla's vehicle lineup.
