Tesla (NASDAQ: TSLA) plans to refund deposits to numerous Cybertruck customers as the electric vehicle manufacturer prepares to discontinue production of its stainless-steel pickup truck in mid-2027.
CEO Elon Musk said outstanding orders exceed the number of vehicles Tesla expects to manufacture before shutting down the assembly line at its Gigafactory in Austin, Texas.
- Tesla expects to end Cybertruck production around June or July 2027 and redirect manufacturing resources toward its Cybercab autonomous robotaxi.
- Musk said the company would temporarily increase production but would still need to refund deposits for many unfulfilled Cybertruck orders.
- US Cybertruck sales fell 48% to 20,237 vehicles in 2025, while deliveries declined another 28% during the first nine months of 2026.
Tesla plans to wind down production of its Cybertruck electric pickup at its Texas Gigafactory around the middle of 2027, CEO Elon Musk announced on Friday, following years of disappointing sales, Reuters noted.
Musk said the decision would free manufacturing capacity at the Austin facility for increased production of Cybercab, Tesla’s purpose-built autonomous vehicle.
However, Tesla has not confirmed whether the vehicle will be discontinued entirely or whether production could move to another factory.
The company’s Austin facility is currently the only known Tesla plant equipped to manufacture the Cybertruck’s specialised stainless-steel components.
Tesla plans Cybertruck production shutdown by mid-2027
Musk confirmed that Tesla intends to dismantle the Cybertruck assembly line in approximately eight months, despite plans to add another production shift to fulfill outstanding customer orders.
The company will attempt to manufacture as many vehicles as possible before ending production. However, Musk acknowledged that its remaining manufacturing capacity would not be sufficient to satisfy every reservation.
The decision follows Tesla’s announcement on November 6 that it would wind down Cybertruck manufacturing and repurpose the production line to increase output of the Cybercab.
The autonomous vehicle is central to Tesla’s strategy of expanding beyond conventional electric vehicles into robotaxi services.
Although Musk has described the remaining Cybertruck orders as a substantial backlog, the pickup’s commercial performance has remained significantly below the company’s original expectations.
Cybertruck sales decline as Tesla shifts toward robotaxis
Tesla began delivering Cybertrucks in late 2023. Musk previously suggested annual sales could eventually reach 250,000 vehicles, but actual demand has remained well below that level.
According to Kelley Blue Book, US Cybertruck sales dropped 48% in 2025 to 20,237 units. Motor Intelligence estimates that sales declined another 28% during the first nine months of 2026, reaching approximately 11,600 vehicles.
| Cybertruck sales indicator | Reported figure |
|---|---|
| US sales in 2025 (vehicles) | 20,237 |
| Annual sales change in 2025 | -48% |
| US sales, January–September 2026 | 11,600 |
| Sales change, January–September 2026 | -28% |
| Musk’s earlier annual sales target (vehicles) | 250,000 |
| Planned production shutdown | Mid-2027 |
The company’s sales figures also include purchases by affiliated businesses. According to a regulatory filing, SpaceX acquired Cybertrucks worth approximately $131 mn from Tesla in 2025 at list prices.
Tesla’s decision reflects a broader reassessment of large electric pickups across the US automotive industry.
Electric pickup market faces demand and profitability challenges
Manufacturers initially expected electric versions of traditional pickup trucks to attract substantial demand, particularly among customers seeking powerful vehicles with advanced technology. However, high production costs, expensive batteries and limitations when towing heavy loads have complicated their commercial prospects.
- General Motors continues to compete in the segment with the Chevrolet Silverado EV, which starts at approximately $62,000.
- Ford has moved away from its F-150 Lightning electric pickup and is developing a smaller electric truck, the Fathom, expected to launch in late 2027 with a starting price of approximately $28,000.
Stellantis is also pursuing a different strategy, preparing an extended-range electric pickup equipped with a gasoline-powered generator to recharge its battery.
Industry analysts argue that large electric trucks face a difficult economic balance: customers must often pay more for vehicles that can deliver less towing capability or range under demanding conditions than comparable gasoline-powered pickups.
Cybercab becomes Tesla’s manufacturing priority
For Tesla, the Cybertruck shutdown represents a shift in manufacturing priorities toward autonomous transportation. The company intends to use the resources released by the pickup’s production line to expand Cybercab manufacturing, although the robotaxi has not yet entered commercial sales.
The transition comes as Tesla seeks to strengthen its position in autonomous driving and develop new revenue opportunities beyond traditional vehicle sales.
Cybertruck customers with outstanding reservations now face uncertainty over whether their vehicles will be manufactured before the shutdown. Musk has indicated that Tesla will attempt to complete as many orders as possible, with refunds expected for customers whose orders cannot be fulfilled.
