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Tesla is preparing to pull the plug on the Cybertruck, closing the book on a pickup that arrived with sweeping promises but never delivered the sales volume envisioned by the company. CEO Elon Musk announced the coming production shutdown through his X account.

Musk wrote early Friday morning, "Tesla will be winding down production of the Cybertruck at Gigafactory Texas around the middle of next year to make room for increased Cybercab production."

The decision may not shock many people in the automotive industry, despite Musk’s grand declarations about demand for the unconventional electric truck. Tesla had said the Cybertruck accumulated more than 1 million preorders, but those reservations did not translate into comparable sales.

Cox Automotive’s Kelley Blue Book estimated that overall Cybertruck sales reached only about 71,000 after the vehicle went on sale in 2023. Tesla and Musk had established enough capacity at Giga Austin to produce 250K Cybertrucks each year.

Actual sales amounted to roughly 10% of that planned annual capacity. The enormous gap between production ambitions and vehicle sales became one of the defining facts surrounding the controversial stainless steel pickup.

The Cybertruck also arrived without meeting some of the major promises presented when Musk first revealed it in late 2019. He had promised that the cheapest version would cost below $40,000, while the model at the top of the range would travel as far as 500 miles.

Neither promise materialized. The difference between the original pitch and the truck that ultimately reached buyers added to a troubled rollout already marked by delays and manufacturing challenges.

Tesla had wanted to begin delivering the first Cybertrucks by late 2021. Finalizing the design and creating the vehicle’s large stainless steel body panels delayed the release, while the pandemic also contributed to the postponement.

By mid 2027, the Cybertruck will have completed a run lasting nearly four years. Its exit will clear manufacturing room for the Cybercab, moving Tesla further from its traditional focus on electric vehicles intended for private drivers.

The upcoming Cybercab has been undergoing testing in certain robotaxi markets. It has no steering wheel or pedals, reflecting Tesla’s sizable wager on autonomous travel and ride sharing rather than conventional private vehicle ownership.

Tesla has said the Cybercab will eventually become available for sale to consumers. For now, however, Musk has identified increased Cybercab production as the reason the company needs the Texas factory space currently devoted to the Cybertruck.

The Cybertruck’s planned discontinuation follows Tesla’s cancellation of the Model S sedan and Model X SUV. Those two vehicles were among the company’s most significant models, though they also carried expensive price tags.

When Tesla ended the Model S and Model X, Musk said their production space at the Fremont factory was needed for Optimus robot lines. The latest factory reshuffling follows a similar pattern, this time replacing Cybertruck capacity with room for Cybercab production.

The Cybertruck’s departure also simplifies the electric truck market. Rivian’s R1T pickup is now the only vehicle of its kind in the market described by the source, although Ford plans to release the Fathom compact electric pickup soon.

Another expected entrant is Slate, a startup offering a basic $25K pickup described as having no frills. Those vehicles will compete without the Cybertruck, a product that once carried expansive forecasts for demand, production and performance.

Musk’s vision of Tesla as a robotics, software and autonomy company is becoming increasingly clear through these decisions. Yet Tesla fans who enjoy driving their own vehicles may question what the shift toward technology will mean for the company’s remaining electric vehicles.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.