Tesla CEO Elon Musk has dismissed suggestions that the company is discontinuing its Cybertruck electric pickup because the vehicle is making financial losses, explaining that the decision is part of a broader shift towards autonomous transportation.
Musk said Tesla would return deposits to many customers whose orders could not be fulfilled before the company shuts down the Cybertruck production line around mid-2027.
The billionaire explained that the company intends to increase production in the coming months to meet outstanding orders. However, Tesla will eventually redirect its manufacturing resources towards the development of its two-seat autonomous vehicle, known as the Cybercab.
According to Musk, the decision is largely influenced by the complexity involved in manufacturing the Cybertruck, arguing that the opportunity cost of continuing production outweighs the benefits of using the same resources to expand Cybercab manufacturing.
The Cybertruck, which was unveiled in 2019 and entered the market in late 2023, has struggled to achieve the commercial success initially projected by Musk.
The electric pickup recorded 20,237 sales in the United States in 2025, representing a 48 per cent decline compared with the previous year. This performance remains considerably below Musk’s earlier ambition of selling approximately 250,000 units annually.
The vehicle has also faced criticism over its pricing, manufacturing quality and safety concerns. Its design has restricted its international market prospects, with the Cybertruck banned from roads in the United Kingdom and European Union because it does not meet certain pedestrian safety requirements.
Tesla’s decision to discontinue the vehicle will allow the company to use its Texas manufacturing facility to expand production of the Cybercab, which is expected to play a major role in its autonomous driving ambitions.
The move signals a significant change in Tesla’s priorities as the company increasingly concentrates on artificial intelligence, robotics and driverless transportation.
