Tesla to end Cybertruck production by mid-2027

Elon Musk confirms eight-month timeline for line closure

He acknowledged that Tesla will have to return deposits for many customers.

There are eight months remaining for the Cybertruck programme, which aligns with the June or July 2027 closure window. The current order backlog is significantly larger than what can be manufactured before the production line is dismantled.

Tesla plans to add an extra shift at the factory in an attempt to complete all existing orders before the programme concludes.

He characterised the decision to wind down production as the "end of an era".

Tesla to refund $100 deposits to customers

The company plans this because the current order backlog exceeds the number of vehicles the Texas plant can produce before the line closes in approximately eight months.

Tesla has not released specific figures regarding the total number of orders in the backlog or the number of customers who will receive refunds. The company also has not disclosed the number of trucks it expects to produce before the closure.

Tesla anticipates that it will fail to fulfil all Cybertruck orders. This outcome remains likely despite the company adding an extra shift to the production schedule.

Manufacturing constraints and production complexity

Consequently, an extra shift may not effectively increase production levels.

Tesla has not disclosed the rated capacity of the assembly line or the new production target following the addition of the extra shift. This shift is intended to compress production into the remaining eight months rather than extending the schedule.

Elon Musk decided to prioritise Giga Texas floor space for Cybercab production. According to a translated post relayed by Futu News, Musk said this decision stems from the opportunity cost of the Cybertruck's complex manufacturing process exceeding the value of additional Cybercab output, though he stated the truck itself is not unprofitable.

Sales decline and regulatory hurdles for the Cybertruck

This represents a 48 per cent decline from the 38,965 units sold in 2024. These figures fall well short of Musk's initial projection of 250,000 annual sales.

SpaceX was one of the largest customers for the vehicle in 2025, purchasing $131 million worth of trucks at list prices. The vehicle's 2019 unveiling featured a demonstration intended to show shatterproof windows that resulted in two windows being badly cracked.

These recalls involved both physical repairs and software updates.

The angular, stainless-steel design prevented the vehicle from gaining approval for sale in Europe due to pedestrian-impact safety regulations. Andy Palmer said the design creates a fundamental regulatory obstacle, noting that the truck cannot go anywhere with crash regulations that account for pedestrian impact.

Automotive analyst Felipe Munoz said weak demand is affecting the entire electric pickup sector. He stated that electric pickups are not popular in the United States.

Cybercab expansion at the Texas facility

The Cybercab features butterfly doors but lacks a steering wheel, pedals, or mirrors. Musk envisions the vehicle as the foundation for a global autonomous taxi network.

Tesla has listed installed capacity for the Cybercab at over 125,000 units.

Historical context and industry reaction

On 6 November, Electrek reported that Tesla was ending Cybertruck production because sales stalled at approximately 10 per cent of the planned target.

On 23 November 2019, Elon Musk said that Cybertruck reservations had reached 146,000.

Business Recorder reported that Tesla plans to add an extra shift to clear Cybertruck orders before the production line is dismantled.

Former Aston Martin CEO Andy Palmer said it does not make sense to keep the production going when it is not meeting its targets.

Broader financial impact on Musk's companies

It is currently unclear if Cybertruck production will be discontinued or moved to another facility. The Austin plant is the only one equipped to manufacture the vehicle's specialised components.