Tesla CEO Elon Musk is defending the company’s decision to end production of the controversial stainless-steel Cybertruck. Musk claims that demand for the vehicle, measured by incoming orders, has significantly outpaced production capacity.
In a post on X, Musk said Tesla would stop producing the Cybertruck in approximately eight months. The company will try to manufacture as many vehicles as possible before then, but Musk also acknowledged that Tesla would have to refund deposits to many customers.
Arguing that the Cybertruck is not unprofitable, Musk explained that the decision comes down to how the company allocates its resources.
“The opportunity cost of the complexity of the Cybertruck is far outweighed by the value of producing additional Cybercabs,” he said.
In other words, Tesla believes it can generate more revenue by reallocating the factory space and resources currently used for Cybertruck production to its Cybercab robotaxis. Last week, Musk said the company planned to use that production space to manufacture more two-seat Cybercab vehicles.
The first Cybertruck deliveries took place in late 2023, when the model appeared poised to become a major success for Tesla. According to Musk, pre-orders quickly reached one million. He also projected that the company would sell approximately 250,000 units annually.
However, those pre-orders never translated into actual sales at the expected scale. Tesla does not report Cybertruck sales separately, but industry experts estimate that approximately 71,000 units have been sold in total since deliveries began in November 2023.
A significant portion of those sales came from companies within Musk’s own business ecosystem. For example, SpaceX (now known as SpaceXSI), which Musk leads and in which he is the largest shareholder, purchased $131 million worth of Cybertrucks from Tesla in 2025, according to its pre-IPO S-1 registration filing.
Musk’s other company, xAI, also purchased $430 million worth of Tesla Megapack energy storage systems for its data centres before merging with SpaceX.
Cybertruck sales, which have remained sluggish for months, could experience a temporary boost as production approaches its end. However, even increased demand resulting from limited availability is unlikely to bring sales anywhere close to the ambitious targets announced several years ago.
