Tesla kills Cybertruck to free Gigafactory Texas for Cybercab

Tesla's decision to end Cybertruck production reflects a broader pattern at the company: earlier decisions to end Model S/X production to free space for Optimus show a willingness to reallocate already-debugged factory capacity rather than build parallel capacity for lower-priority products. Gigafactory Texas has finite floor space, specialized equipment, labor, and engineering bandwidth, and building additional factory space for both products is not a simple alternative.

The Cybertruck line's complexity makes the trade-off especially clear. The vehicle locks up a line with installed capacity well above actual demand—roughly 125,000 units/year capacity versus ~20,000 U.S. sales in 2025 and ~70,000 total since late 2023, far short of the earlier 250,000/year target. Musk explicitly framed the move as opportunity cost rather than pure unprofitability, saying the complexity of continuing Cybertruck is outweighed by the value of incremental Cybercab production.

The Cybercab, a two-seater purpose-built robotaxi with no steering wheel or pedals, is already being produced in Texas and deployed in Tesla's Austin robotaxi fleet. The shift supports the company's broader move toward high-utilization autonomy services and robotics, a strategic priority that now takes precedence over the complex, lower-volume Cybertruck.