Tesla to Phase Out Cybertruck Production by Mid-2027, Musk Announces

Washington: Tesla, the American company with a distinctive identity in the electric vehicle world, is facing difficulties with one of its major projects. The Cybertruck, introduced as a future pickup truck, has not gained popularity in line with customers’ expectations, and the company has therefore decided to halt its production.

According to a report by a British news agency, Tesla chief executive Elon Musk has announced that production of the Cybertruck at the company’s factory in the US state of Texas will be gradually phased out by mid-2027.

Musk said on the social media platform X that the decision would help the company increase production of its self-driving taxi, the Cybercab. The Cybercab is among Tesla’s key future projects, through which the company wants to establish a network of driverless taxis.

Steady decline in sales

The company presented the Cybertruck as a modern alternative to traditional pickup trucks, but its sales consistently fell short of expectations. The automotive data platform Kelley Blue Book says Tesla sold just 20,237 Cybertrucks in the United States in 2025, compared with 38,965 in 2024. This represents a 48 per cent drop in sales over one year.

When Cybertruck production began in 2023, Musk had indicated a target of selling 250,000 vehicles a year, but the company has not come close to it. Andy Palmer, former chief executive of Aston Martin, said that when a vehicle fails to meet its sales targets, continuing its production is not commercially sensible.

Criticism and technical problems

Since its first unveiling in 2019, the Cybertruck has been a subject of debate because of its angular design and stainless steel exterior. During the unveiling, Musk had metal balls thrown at the windows to prove they were unbreakable, but two of the windows developed large cracks.

The US National Highway Traffic Safety Administration says the Cybertruck has been recalled 11 times since sales began due to various problems. Some vehicles required physical repairs, while others were fixed through software updates.

Automotive analyst Felipe Munoz says it is not right to attribute the low Cybertruck sales solely to the company’s failure, as electric pickup trucks have not gained much popularity in the United States overall. Electric pickups from Ford and other companies have also failed to succeed in the American market. Europe has strict rules on pedestrian safety, which the Cybertruck’s design does not meet.

Tesla is now focusing its attention on AI, robotics and self-driving technology. The Cybercab is a two-seat autonomous taxi with no steering wheel, pedals or side mirrors. Its production is still at an early stage.

The company has not made clear whether Cybertruck production will be moved to another factory or ended entirely. In a reply to a user on X, Musk described the Cybertruck as Tesla’s best vehicle so far, while calling the decision to end its production the end of an era.

The announcement comes at a time when Musk’s business empire is also under financial pressure. According to the report, the combined market value of his companies is likely to fall by more than $180 billion this week.