Tesla to Kill Cybertruck Line by Mid-2027, Refund Deposits as Orders Outstrip Output
TSLA sits 22% above its 52-week low of $297.38.
Summary
Musk said Tesla will shut down Cybertruck production at its Texas factory in about eight months, by mid-2027, and refund deposits to many buyers because outstanding orders exceed what the line can build. The capacity freed up goes to Cybercab robotaxi output, which Musk argues is worth more than the Cybertruck's production complexity. He insisted the decision was not driven by the truck being unprofitable. The demand picture is the real problem: US Cybertruck sales fell 48% to 20,237 units last year, far below his earlier 250,000-a-year projection. This lands after a Q3 where revenue of $28.05B was flat and operating income fell 56% to $718M on surging AI and R&D spend, so scrapping a low-volume, complex product line is a cost and focus call as much as a demand admission.
At the time of this announcement, TSLA was trading at $361.71 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $1.4T. The 52-week trading range was $297.38 to $498.83. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.