Why Tesla is discontinuing Cybertruck after just 3 years
What's the story
Tesla will stop producing the Cybertruck next year. The decision was revealed by CEO Elon Musk on X. He said the company will repurpose the factory space for manufacturing more two-seater Cybercab robotaxis. The futuristic steel-clad EV has been struggling with sales since its launch in late 2023, with a far lower sales figure than initially projected.
Sales performance
Cybertruck sales far lower than initial projections
When Musk first delivered the first few Cybertrucks in late 2023, he had predicted Tesla would sell around 250,000 units annually.
However, the company has only sold a few tens of thousands over the last three years.
This disappointing sales performance has led to Tesla's decision to discontinue production of the Cybertruck in favor of its AI and robotics ambitions.
Production shift
Tesla to focus on expanding robotaxi fleet
Tesla has been focusing on its robotaxi ambitions, with Cybercabs already hitting the streets of Austin, Texas.
The company plans to expand this operation to other cities starting with Dallas later this month.
This is not the first time Tesla has discontinued a product for its greater ambitions; earlier this year, it stopped making the Model S sedan and Model X SUV to make space for Optimus humanoid robots.
Production timeline
Price hike and design of Cybertruck hurt its sales
First unveiled in 2019, the Cybertruck was delayed for two years in part because of the COVID-19 pandemic.
When it finally hit the market in late 2023, its base price had inflated to around $60,000 and top-end range had shrunk by over 161km.
The truck has struggled on the market ever since with its polarizing design not sitting well with buyers at a higher-than-expected price.
Market challenges
Controversies surrounding Musk also contributed to decline in popularity
The Cybertruck has sold over 63,000 units so far, a far cry from the 250,000 units per year Musk predicted before its launch.
Its controversial design made from a proprietary stainless steel alloy failed to pass European safety regulations, barring a major market from the Cybertruck's sales reach.
Controversies surrounding Musk also contributed to the decline in popularity of this unique electric pickup truck.