Tesla to refund Cybertruck deposits as production shifts to robotaxi

“The order rate for the Cybertruck far exceeds our production rate. We will attempt to manufacture as many as possible before the line closes in about eight months, but we will have to refund deposits to a lot of people,” Musk wrote on his platform X.

Musk clarified that the decision to discontinue the Cybertruck is not due to profitability concerns, but rather a strategic priority shift. He argued that the complexity of the Cybertruck’s production represents a significant opportunity cost compared to the Cybercab, Tesla’s driverless robotaxi.

Tesla will add an extra production shift to attempt to fulfill as many orders as possible before dismantling the line. However, the volume of pending reservations makes it impossible to accommodate all waiting buyers.

The Cybercab will replace the Cybertruck at the Texas plant.

The Cybertruck production line at the Gigafactory Texas, near Austin, is scheduled to cease operations in mid-2027. The freed-up space and resources will be dedicated to scaling up Cybercab production. Tesla plans to launch the Cybercab before the end of 2026, though this timeline faces scrutiny from the U.S. National Highway Traffic Safety Administration due to the vehicle’s lack of manual controls.

The initial announcement was made by Musk on X on November 6th. Chief Engineer Wes Morrill also posted on X, a message interpreted as a definitive end to the Cybertruck project: “The Cybertruck was an incredible technology development platform and lives on through the Cybercab.”

The Cybertruck’s sales have consistently fallen short of Musk’s projections. He initially anticipated annual sales of 250,000 units, but Kelley Blue Book reports sales in the U.S. dropped 48% last year to 20,237 units, with a further 28% decline year-to-date in 2026.

The vehicle, launched at the end of 2023 with its stainless steel body and angular design, also saw its price significantly exceed initial estimates. Musk had indicated the model would be accessible, but the Cyberbeast currently costs $102,000.

Wall Street analyst Dan Ives, Senior Managing Director of Yorkville Ives & Co., told CBS News that the outcome was “written on the wall” due to the high price and low demand, freeing up time and capacity for Musk to focus on robotics and robotaxis.

This move aligns with Tesla’s broader strategy to discontinue higher-priced models, including the Model S and Model X, to make room for the humanoid robot “Optimus.”

Musk emphasized that the shift is aimed at concentrating resources on artificial intelligence, robotics, and autonomous vehicles. “If we have to maintain a complex production line, a supply chain, and assign engineering for the Cybertruck, we can’t use those people or that factory space to scale the Cybercab, which is the vehicle that will profoundly transform the world of terrestrial transportation,” he wrote on X.

Despite the end of production, Musk added, “There will never be another vehicle like this” and that the existing fleet “will continue to be around for a long time.”