Business1 min read

Tesla to wind down Cybertruck production at Texas factory as it struggles to win appeal

By · Published by Everything Blog

In short

Elon Musk confirmed on social media that Austin gigafactory operations for the pickup will wind down around mid-next year to accelerate Cybercab manufacturing. The pickup had faced persistent setbacks, including assembly quality-control problems, fluctuating prices, and multiple vehicle recalls since its 2023 commercial debut. Additionally, deliveries in Tesla's "Other Models" segment, which includes the pickup, declined sharply from 12,364 units in the second quarter to 8,295 in the third quarter. Lead engineer Wes Morrill stated that development insights gained from the vehicle will carry directly into the company's autonomous vehicle fleet.

Key points

  • Winding down pickup assembly allows Tesla to redirect key factory resources toward mass-p…: Winding down pickup assembly allows Tesla to redirect key factory resources toward mass-producing the Cybercab autonomous vehicle network.
  • Persistent quality-control issues, repeated recalls, and volatile pricing severely restri…: Persistent quality-control issues, repeated recalls, and volatile pricing severely restricted the vehicle's capacity to rival legacy American truck brands.
  • Engineering advancements pioneered on the pickup platform will now be applied directly to…: Engineering advancements pioneered on the pickup platform will now be applied directly toward Tesla's long-term pivot to robotics.

Sources checked by our analysis pipeline: 1

Nov 6 : Tesla plans to wind down Cybertruck production at its Texas gigafactory around the middle of next year, CEO Elon Musk said on Friday, as the model once touted as a futuristic rival to legacy pickup trucks struggles to win mass-market appeal.

While it was not immediately clear whether Cybertruck production would be moved to another facility, or phased out entirely, the automaker's Austin plant is the only known Tesla facility equipped to manufacture the model's specialized components.

Tesla did not immediately respond to a Reuters request for comment sent outside regular business hours.

In an X post, Musk said the production wind-down would enable the automaker to accommodate increased production of its newly launched Cybercab model, which Musk has made central to Tesla's robotaxi ambitions.

Musk has said he sees it as Tesla's main autonomous model within a larger driverless network as he aims to transform the electric vehicle maker into a robotics and self-driving company.

"Cybertruck was an incredible technology development platform and lives on through Cybercab," Cybertruck lead engineer Wes Morrill said on X.

"POLARIZING"…

Business