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Elon Musk said on X on Friday, November 6, 2026, that Tesla will wind down production of the Cybertruck at Gigafactory Texas around mid-2027 to make room for increased production of the Cybercab.
The Cybercab is a two-seat robotaxi currently under federal examination. The decision shifts manufacturing capacity at the Texas facility from the pickup truck to the autonomous ride-hailing vehicle.
Cybercab Faces Federal Scrutiny
Tesla began charging for rides in Austin during the Cybercab launch on September 3. Hours after the launch, the National Highway Traffic Safety Administration (NHTSA) opened an audit of the vehicle.
The Cybercab lacks a permanently attached steering wheel, pedals, and mirrors. Tesla certified the vehicle as compliant with all applicable federal safety standards and did not seek an exemption from regulations.
NHTSA escalated the situation on September 10 by issuing a Special Order, a formal legal demand for sworn answers regarding the vehicle’s safety compliance. Incomplete replies to this order risk penalties of up to $139 million.
Financial Impact and Production Swap
Tesla’s investor deck lists installed capacity in Texas above 125,000 vehicles a year each for the Cybertruck and the Cybercab. The production swap ties more of Tesla’s valuation to autonomy than to traditional vehicle sales.
Third-quarter deliveries of Tesla’s other models, including the Cybertruck, Semi, Model S, and Model X, fell 48% year over year to 8,295 units. Operating income fell 56% to $718 million, while research and development spending jumped 69%. This decline followed a profit miss in the second quarter.
Musk told the earnings call that most Cybercabs will be owned by Tesla and offered as a ride service. This structure means revenue would arrive per ride rather than at the point of sale, potentially slowing payback compared to direct vehicle sales.
Tesla stock fell 11% on Thursday, before Musk’s announcement. Bloomberg tied the drop to a post-midterm selloff in Musk-linked companies. Shares are down about 24% this year. Third-quarter automotive revenue fell 3% to $20.56 billion.
Frequently Asked Questions
When will Tesla stop making Cybertrucks?
Elon Musk stated that Tesla will wind down Cybertruck production at Gigafactory Texas around mid-2027.
What is the current status of the Cybercab with NHTSA?
NHTSA issued a Special Order on September 10, demanding sworn answers regarding the Cybercab’s safety compliance, with potential penalties of up to $139 million for incomplete replies.
