Tesla Inc. will wind down production of its controversial Cybertruck at its Texas Gigafactory around mid-2027, Chief Executive Officer Elon Musk announced on Friday. The decision marks a major strategic shift for the electric vehicle maker as it reallocates manufacturing capacity toward its newly launched autonomous Cybercab.

Writing on X, Musk called the wind-down the “end of an era,” while touting the futuristic pickup as the “best vehicle Tesla has ever made”.

However, the move follows years of underwhelming sales for a vehicle once envisioned as a mass-market disruptor.

Unveiled in 2019 and first delivered to customers in late 2023, the sharp-edged, stainless-steel truck struggled to establish commercial traction. Musk originally predicted annual output of 250,000 units, but sales fell drastically short. According to data from Kelley Blue Book, Tesla sold 20,237 Cybertrucks in the U.S. last year—a 48% drop from 38,965 units in 2024.

Automotive experts note that while electric pickup sales have struggled across the industry, the Cybertruck faced unique engineering hurdles. Its angular design and rigid exterior made regulatory approval nearly impossible in major overseas markets.

“Anywhere where you have crash regulation that takes into account pedestrian impact, that Cybertruck won’t go, can’t go,” said former Aston Martin CEO Andy Palmer, adding that rational auto executives would agree with halting production when target metrics are missed.

Although Austin is currently the only facility equipped with the specialized tooling required for Cybertruck components, Tesla plans to retool the plant to maximize Cybercab production. Featuring butterfly doors and no steering wheel, pedals, or mirrors, the Cybercab lies at the center of Musk’s ambition to transition Tesla from a traditional automaker into an AI and robotics enterprise.

Tesla began offering paid rides in a small fleet of Cybercabs in Austin in September, though the vehicle remains under scrutiny from U.S. auto safety regulators regarding self-certification compliance with federal standards.

Addressing the transition on X, Cybertruck lead engineer Wes Morrill framed the vehicle’s legacy around innovation: “Cybertruck was an incredible technology development platform and lives on through Cybercab”.

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