Tesla will end Cybertruck production at its Texas gigafactory around mid-2027 due to weak sales and multiple recalls, with CEO Elon Musk confirming the shift toward self-driving Cybercabs and AI robotics. The Cybertruck, launched in 2023 after a 2019 unveiling, has struggled with safety issues and underperformed sales expectations. Cox Automotive reports only 11,586 units sold from January to September 2026, a 28% decline year-on-year, capturing just 1.6% of the U.S. EV market.
Analysts had projected 22,000 sales for the year. SpaceX has emerged as a major buyer amid sluggish consumer demand, and Musk has floated a potential mega-merger between Tesla and SpaceX. Tesla is not abandoning the truck segment entirely, having launched mass production of its electric Semi Truck in April.
The company now prioritizes Optimus humanoid robots, autonomous Cybercabs, and the Semi as Chinese rivals intensify pressure on its core EV business. Tesla aims to deliver Cybercabs by late 2026. Shares dropped 15% following Republican losses in the midterm elections, amid voter concerns over AI and Big Tech influence.
Source: Financial Times Companies · Summarized by HeadlinesBriefing