Tesla to End Cybertruck Production, Refund Some Deposits

Tesla CEO Elon Musk is defending the company’s decision to end Cybertruck production, saying demand for the electric pickup still exceeds what the automaker can manufacture. However, Tesla plans to redirect factory resources toward producing its upcoming Cybercab robotaxis.

In a post on X on Monday, Musk said Tesla expects to shut down Cybertruck production in approximately eight months. The company will attempt to build as many vehicles as possible before production ends, but it will also need to refund deposits to many customers who placed orders.

Musk rejected the suggestion that the Cybertruck was unprofitable. Instead, he explained that the decision came down to how Tesla could make better use of its manufacturing capacity.

According to Musk, the “opportunity cost of the complexity of Cybertruck is vastly outweighed by the value of incremental Cybercab production.”

In practical terms, Tesla believes it can generate greater value by using the factory space and resources currently allocated to the Cybertruck to manufacture more Cybercab robotaxis.

Tesla Shifts Focus Toward Cybercab Production

Musk said last week that Tesla intends to use the factory space currently dedicated to Cybertruck production to build additional two-seat Cybercabs.

The move reflects the company’s growing focus on autonomous transportation and robotaxis. By shifting manufacturing capacity, Tesla aims to increase production of the vehicles it expects to play a major role in its future business.

The Cybertruck, meanwhile, has struggled to meet the expectations that surrounded its launch.

Cybertruck Sales Fell Short of Early Expectations

Tesla began delivering the first Cybertrucks to customers in late 2023. At the time, the vehicle appeared to have the potential to become a major success for the company.

Reservations reportedly reached 1 million, according to Musk. He also predicted that Tesla could eventually sell around 250,000 Cybertrucks annually.

However, those early reservations did not translate into sales at the expected scale. Tesla does not publish separate Cybertruck sales figures, but industry estimates suggest the company has sold approximately 71,000 units since deliveries began in November 2023.

Some of the purchases also came from companies connected to Musk.

For example, SpaceX, now known as SpaceXSI, purchased $131 million worth of Cybertrucks from Tesla in 2025. The purchase was disclosed in the company’s S-1 registration statement filed ahead of its initial public offering.

Another Musk-led company, xAI, purchased $430 million worth of Tesla Megapacks for its data centers before merging with SpaceX.

Could Production Ending Increase Demand?

The Cybertruck’s sales have remained below the ambitious targets Musk outlined before its launch. However, the announcement that production will end could create renewed interest among buyers.

Limited availability sometimes encourages customers to purchase products before they disappear from the market. That could give Cybertruck sales a temporary boost during Tesla’s remaining production period.

Still, it remains uncertain whether the announcement will significantly change demand. Even a final increase in sales is unlikely to bring the vehicle close to the ambitious annual sales projections made several years ago.

For Tesla, the decision signals a shift in priorities. Rather than continuing to invest factory capacity in the Cybertruck, the company is choosing to focus more heavily on Cybercab production and its robotaxi ambitions.

Also read : Underdog Unveils 32MB AI Voice Model That Runs in Your Browser