Tesla to end Cybertruck production in Texas for Cybercab
Electric vehicle maker shifts focus to Cybercab after Cybertruck production struggles and significant financial losses.
(Photo via CNBC)
Tesla CEO Elon Musk announced on Nov. 6, 2026, that the company plans to wind down production of the Cybertruck at its Gigafactory Texas.
The Cybertruck, which first launched in late 2023 following multiple delays, struggled to reach mass-market sales. Over a three-year period, the company sold approximately 70,000 units, despite installing tooling capable of producing 125,000 vehicles annually. Financial reports indicate the project incurred a net loss of $1.9 billion, resulting from $2 billion in research and development costs against $100 million in gross profit.
The vehicle's market performance was impacted by a high price point, a polarizing design, and several voluntary recalls involving components such as accelerator pedals, exterior trim panels, and brake rotors. It remains unconfirmed whether Tesla intends to relocate Cybertruck production to another facility or discontinue the model entirely.
Wes Morrill, Tesla’s Cybertruck lead engineer, stated that the vehicle served as a significant technology development platform that will influence the future of the Cybercab. Tesla began offering paid rides with the Cybercab in Austin, Texas, in September 2026.