Tesla to wind down Cybertruck production at Texas factory as it struggles to win appeal

The clang of the stainless‑steel stamping press that once shaped the polarizing Cybertruck is being slowed, and the floor that once held the angular pickup will soon host a very different vehicle – the Cybercab, a steering‑less, butterfly‑door concept meant for driverless ride‑hailing.

The decision follows a steady slide in the model’s market traction: third‑quarter deliveries fell to 8,295 units, down from 12,364 the quarter before, and independent estimates place total 2023‑2025 deliveries at roughly 70,000 – a fraction of the hundreds of thousands Tesla expects from its Model 3 and Model Y. Quality‑control recalls, multiple price revisions and a design that struggles to gain regulatory approval outside the United States have all chipped away at the truck’s broader appeal.

The real pivot, however, is not simply a cut‑back on a struggling product but a calculated reallocation of scarce factory capacity. Tesla’s Austin plant is the only site equipped to forge the Cybertruck’s specialized stainless‑steel exoskeleton. By freeing that line, the company can increase output of the Cybercab, a vehicle without steering wheel, pedals or mirrors that Musk positions as the cornerstone of a global robotaxi network. Paid rides with a small fleet of Cybercabs began in Austin this September, but the U.S. auto safety regulator is still probing whether Tesla correctly self‑certified the model under federal safety standards.

What this shift signals for Tesla’s broader strategy is two‑fold. First, it admits that the electric‑pickup boom — once predicted to rival conventional trucks from GM and Ford — has not materialised as a high‑volume revenue stream. Second, it underscores Musk’s belief that autonomous mobility, rather than niche EV trucks, will drive the next growth phase. “Cybertruck fleet will be around for a long time,” Musk wrote, calling the pickup “the best vehicle Tesla has ever made,” yet the wind‑down marks “the end of an era” for the platform he once touted as a technology development springboard.

The move leaves several open questions. Tesla has not clarified whether Cybertruck production will be transferred to another site or simply end. And the outcome of the regulator’s inquiry into Cybercab certification could affect how quickly the robotaxi vision scales.