Tesla Discontinues Cybertruck to Focus on Robotaxi

Tesla is halting production of the Cybertruck to allocate resources to a new project, the Cybercab robotaxi. Elon Musk, CEO of Tesla, announced the decision, stating that the current orders for the Cybertruck surpass Tesla’s production capabilities.

Musk shared that the company will attempt to fulfill as many orders as possible in the next eight months. However, many customers may see their deposits returned if production targets aren’t met. He emphasized that this decision does not stem from the Cybertruck being unprofitable but prioritizes the scalability of the Cybercab.

The Cybertruck debuted in 2023 with ambitious forecasts of selling 250,000 units annually. Yet sales have not met expectations, with only around 20,000 units sold in the U.S. last year and approximately 16,000 so far in 2026. The truck also faced resistance and vandalism associated with anti-Musk sentiment during his involvement with DOGE.

Musk noted that the complexity of maintaining the Cybertruck’s production line diverts necessary resources from the Cybercab. He explained that prioritizing the Cybercab aligns with the company’s future vision, impacting terrestrial transport significantly.

This strategic shift follows Tesla’s earlier decision to discontinue the Model S and X premium electric vehicles. The company aims to repurpose resources towards the Cybercab project and the Optimus humanoid robot. These moves indicate a broader transition away from traditional vehicles.