Tesla to wind down Cybertruck production as Elon Musk focuses on robotics and AI

Musk said the plant will be repurposed for the Cybercab, a self-driving taxi with space for two passengers and no steering wheel.

Production of the Cybertruck will cease at the Texas facility, marking the end of a project that struggled with technical challenges and safety standards.

The company does not plan to build the truck elsewhere, which would likely require significant investment in specialised tooling.

Musk has shifted Tesla’s focus toward robotics, artificial intelligence, and an autonomous driving fleet rather than traditional car models.

Production struggles and sales

Tesla began deliveries of the Cybertruck in late 2023 after multiple delays caused by the technical difficulties of producing its unique steel shell.

The vehicle never reached the safety standards required for sale in Europe.

Musk had aimed to sell 200,000 Cybertrucks annually, but the company never approached that target.

In the third quarter of 2026, Tesla delivered only 8,300 'other models,' which include the Cybertruck, compared to 478,000 combined deliveries of the Model 3 and Model Y.

Tesla also stopped production of its Model S and Model X this year amid declining sales for these ageing products.

Musk’s shifting priorities

Tesla has started offering paid trips in the Cybercab in limited parts of Austin, Texas, but the rollout of the service faces close regulatory scrutiny.

The Texas factory will also be used to build Tesla’s Optimus humanoid robot.

Musk is aiming to produce a road-bound version of the Roadster sportscar in 2028, though analysts do not expect it to significantly impact Tesla’s future profits.

The company is still ramping up production of its long-delayed Semi electric lorry.

Musk posted on X that Tesla will wind down Cybertruck production to make room for increased Cybercab production.