Tesla plans to reduce Cybertruck production in Texas to focus on Cybercab robotaxi expansion

Tesla CEO Elon Musk announced on Friday that the company will stop producing the Cybertruck at its Texas Gigafactory around mid-2027. This decision came after several years of weak sales for the futuristic model, which was initially positioned as a competitor to traditional pickup trucks but sold only in a limited number of markets due to its massive and angular design.

Musk stated in a post on the social media platform X that halting production would allow the automaker to increase output of the recently launched Cybercab, which he considers a central element of Tesla's ambitions in robotaxis.

It was not immediately clear whether Cybertruck production would be moved to another facility or completely discontinued, but the Tesla plant in Austin is the only one known to be equipped to manufacture specialized components for this model. Responding to a user on X, Musk called the Cybertruck 'the best car Tesla has ever made,' and the cessation of production 'the end of an era.'

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

The American electric vehicle manufacturer began delivering Cybertrucks to customers only at the end of 2023. According to Kelley Blue Book, only 20,237 units of the Cybertruck were sold in the US last year, which is 48% less than the 38,965 sold in 2024. Before the launch, Musk had projected annual sales of 250,000.

Former Aston Martin CEO Andy Palmer noted: 'It is pointless to continue its production if it does not meet target figures.' He added that any rational automotive expert would agree with this, and although it might be a minor deviation in Tesla's balance sheet, the statistics speak for themselves.

Controversies surrounding the Cybertruck

Since its debut in 2019, the Cybertruck has been controversial for Musk. Proponents of classic pickup trucks mocked its angular appearance, while safety experts predicted it would face difficulties obtaining approval in key markets such as Europe.

The presentation itself was marred by a moment when Musk attempted to demonstrate the car's shatterproof windows by throwing metal balls at them, resulting in large cracks forming on two of the windows. At the official Cybertruck launch in 2023, Musk presented it as a futuristic competitor to trucks from General Motors and Ford, stating: 'Finally, the future will look like the future.'

However, the vehicle failed to live up to these expectations. Automotive analyst Felipe Muñoz stated that while the Cybertruck is being labeled a failure due to poor sales, electric pickups from Ford and others have also struggled in the US. Muñoz emphasized: 'They all lost the competition because electric pickups are not popular in the US.'

Nevertheless, the sharp stainless steel design of the Cybertruck limited its chances in markets like Europe, where electric vehicles are more sought after. Obtaining regulatory approval in Europe proved impossible due to rules concerning pedestrian impact. Palmer stated: 'In any place where accident regulations considering pedestrian impact apply, the Cybertruck will not pass, it cannot pass.'

Musk's New Bet

The Cybercab, which features gullwing doors and lacks a steering wheel, pedals, or mirrors, is one of Musk's key bets in his effort to transform Tesla from a mere car manufacturer into a company focused on artificial intelligence and robotics. Musk views it as Tesla's primary autonomous model, intended for servicing a global network of robotaxis.

After years of delays in achieving self-driving goals, Tesla began offering paid rides with a small fleet of Cybercabs in Austin in September. Nevertheless, the company still needs to answer questions from US vehicle safety regulators regarding whether it has properly certified the Cybercab as compliant with federal vehicle safety standards.

Weight Morrill, lead engineer of the Cybertruck, stated on X: 'The Cybertruck was an incredible technological platform for development and continues to live through the Cybercab.'

A hypothetical merger between SpaceX and Tesla could grant Elon Musk greater voting power in both corporations, bypassing the need to meet all conditions of his compensation plans.

Furthermore, such a transaction could alter the terms for receiving part of Tesla's stock package, valued at up to $1 trillion USD (5.4 trillion Brazilian reais).

Musk stated during a teleconference about SpaceX's results last month that the boards of directors of both companies have established special committees to discuss a potential merger.

Differences in compensation plans help illustrate the impact of a possible deal. In Tesla, the plan approved by shareholders in 2025 sets targets for market capitalization and operational goals, such as launching one million robotaxis. Currently, Musk has not met any of these goals.

Even if he meets all the goals, his voting share in the manufacturer would be around 29%, according to documents presented by the company's board.

The model in SpaceX is different. The compensation plan involves shares tied to goals such as establishing a colony of one million people on Mars and building space data centers. However, Musk received the corresponding voting rights immediately, although he does not yet have the economic value of these shares. This allows him to concentrate 85% of the votes in the company.

According to Barclays estimates, if SpaceX acquires Tesla, Musk would receive about 37% of the stake in the new conglomerate but would control 56% of the votes. This difference is possible because SpaceX's special class shares carry ten times more votes than common shares. Tesla does not have an equivalent structure.

Tesla's compensation plan includes special conditions for changes in control, such as a potential acquisition by SpaceX. In such a scenario, Musk could receive shares upon meeting market capitalization targets without achieving certain operational milestones.

Tesla's market capitalization is approximately $1.6 trillion USD (8.64 trillion Brazilian reais). To unlock the first part of the package, the value must reach $2 trillion USD (10.8 trillion Brazilian reais) due to the merger. At this level, Musk would receive $20 billion USD (108 billion Brazilian reais) in shares.

The calculation considers the stock price immediately before the deal or the amount shareholders receive from the deal, whichever is higher. The actual payout amount will be less, as the plan only accounts for the increase in stock value after the announcement made in September 2025.

The SpaceX plan is less detailed regarding what will happen in a merger. Four out of six executive compensation experts surveyed by Reuters believe that the board of directors could significantly change the terms of the agreement.

The package includes two sets of goals: one combines market capitalization targets with establishing a colony on Mars; the other links company growth to building space data centers capable of providing 100 terawatts of computing power per year.

Under the maximum forecast, the plan's shares could be worth $719 billion USD (3.88 trillion Brazilian reais), according to consulting firm Equilar, based on the current number of SpaceX shares.

The issue of voting rights at Tesla was previously raised by Musk himself. In October 2025, he stated that he was concerned about creating a large army of robots and subsequently the risk of being removed from company management.

Elon Musk's new flying Tesla Roadster has attracted public attention as the first 'flying car' from the manufacturer, but the reaction of leading technology reviewers has not been as enthusiastic.

During a demonstration on October 16, the Tesla Roadster ascended a vertical ramp, was held by a special 'suction cup' system, and then performed a fall, a rollover, and landed safely. This maneuver was made possible by powerful engines that release compressed air to cushion the impact and prevent contact with the ground.

Visually, the car resembles a vehicle from 1980s or early 1990s science fiction films, possessing a sharp, angular aesthetic that combines features of the DeLorean from 'Back to the Future' and retro-futuristic cruisers from 'Total Recall.'

Even if this apparatus never reaches the consumer market, it successfully dominated global tech news for the past week.

Mark Brownlee, who has over 21 million subscribers on YouTube, noted: 'Tesla conducted one of the wildest product demonstrations of all time. Personally, I don't like this design. I preferred the old model. I actually thought the old car was very beautiful, even though it was never produced. This new one will take me some time to like.'

Meanwhile, creator of technological parody content SAMTIME, who has 657,000 subscribers on YouTube, mocked the launch, stating: 'A brand new flying Tesla car. Looks completely safe. And I'm sure their software won't have any bugs. Although their latest version of Windows literally crashed. If AI doesn't kill us, flying cars will!'

The presentation of the Roadster comes against the backdrop of Tesla reporting a decrease in third-quarter profits, as Musk appears to be increasing investments in artificial intelligence and other technologies. According to reports, research and development costs have more than doubled due to the company actively spending funds on AI, robotics, and autonomous transport.