Tesla Cybertruck Axed as EV Pickup Market Struggles

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Cybertruck Production to End as Tesla Refocuses on Robotaxis

Tesla’s decision to halt Cybertruck production next year marks one of the most prominent retreats yet from the once-celebrated market for oversized electric pickups.

In a social media post on Saturday, CEO Elon Musk outlined plans to increase Cybertruck output at Tesla’s Austin, Texas, facility long enough to fulfill an “order backlog,” then dismantle the production line around June or July. He said the move is intended to free capacity for building more Cybercab robotaxis, a product that has not yet reached commercial sale.

Sales Slump and Missed Volume Ambitions

The Cybertruck – known for its stainless-steel body and sharp-edged styling that MotorTrend once called a “stealth-bomber-refrigerator design theme” – has struggled to sustain demand. Sales dropped 28% this year through September, to about 11,600 vehicles, based on estimates from research firm Motor Intelligence.

That performance is well below the 250,000-unit annual level that Musk had previously projected for the model. A federal regulatory filing also showed that Musk’s other major venture, SpaceX, purchased Cybertrucks from Tesla at list price last year totaling $131 million.

EV Pickup Strategies Falter Across Detroit

Tesla’s pullback comes as other automakers also face challenges with large battery-powered pickups. Even with the Cybertruck’s comparatively limited deliveries, its volumes have surpassed sales of electric trucks from General Motors and Ford Motor, companies that once envisioned strong demand for electric versions of their high-profit full-size pickups.

GM, Ford and Ram maker Stellantis moved into the EV pickup segment earlier this decade, in part to counter offerings from Tesla and Rivian. These manufacturers have long relied on full-size trucks with escalating horsepower and towing capacities to build loyal customer bases. Yet that formula has not transferred seamlessly to electric models, according to Karl Brauer, executive analyst at vehicle research site iSeeCars.com.

Brauer noted that high costs tied to large battery packs are a major obstacle. GM’s Chevrolet Silverado EV, for instance, has a starting price of around $62,000. At the same time, electric pickups often struggle with core tasks that traditional truck buyers demand, such as towing horse trailers or transporting heavy equipment.

“So in the end, you have to pay more money for a vehicle that is less functional,” Brauer said.

Pivot Toward Smaller EVs and Hybrid Solutions

Ford has openly acknowledged the economic headwinds around big electric pickups. On an earnings call last year, CEO Jim Farley explained why the company would discontinue the Ford Lightning, the battery-electric version of its F-150 that had initially enjoyed a period of strong interest before demand weakened.

“The larger the vehicle, the bigger the battery, the more pressure on margin because customers will not pay a premium,” Farley said.

Ford is now emphasizing a more compact electric pickup, the Fathom, targeted for launch late next year with a starting price near $28,000.

At the same time, automakers are turning to hybrid and extended-range architectures to better align capability with customer expectations. Stellantis plans to introduce an extended-range electric pickup truck next year that will employ a gasoline-powered generator to recharge the battery while driving, in an effort to give truck buyers the utility they expect in a partly electric format.