A clearer view of what matters

Tesla has announced plans to halt production of its electric pickup, the Cybertruck, by mid-next year. On the 6th, local time, CEO Elon Musk said on X that production of the Cybertruck at the Texas Gigafactory would be gradually reduced. The factory is expected to shift toward expanding production of the autonomous taxi Cybercab.

According to a report by Financial News, Musk described the Cybertruck as a pickup that emphasized a rugged exterior and performance, and said the technology developed during its creation became the foundation for Cybercab. Wes Morrill, who led the design, also said in effect that the Cybertruck would remain a platform for technological development, with its achievements carrying over to Cybercab. In other words, stopping production does not mean the technology developed for the Cybertruck will be discarded.

The background to this decision appears to be sales that fell short of expectations. Cox Automotive estimates, as cited in the report, put Cybertruck sales in the first nine months of this year at 11,586 units, down 28% from the same period last year. Its share of the U.S. EV market was only 1.6%. Considering that Tesla had previously set an annual production target of 250,000 to 500,000 units before launch, the gap between expected and actual demand was substantial. Recalls and safety issues have also been mentioned as burdens surrounding the Cybertruck.

Tesla’s move is in line with a broader trend of streamlining certain models and shifting the company’s center of gravity. According to the report, the company also suspended production of the Model S and Model X this year. While Cybertruck production is being halted, Tesla is not withdrawing from the truck business altogether. The electric truck Semi reportedly began mass production in April.

Going forward, Tesla’s main pillars are expected to be Cybercab, the Optimus robot, artificial intelligence (AI), and Semi. However, whether the production shift and expansion into new businesses will actually lead to better financial results is a separate question. The Cybertruck case shows that new technology and strong brand attention alone do not guarantee large-scale sales. Going forward, whether the transition to Cybercab production proceeds as planned, and whether the robotics and AI businesses translate into meaningful revenue, will be key indicators for assessing Tesla’s strategy.