Tesla to Discontinue the Cybertruck Next Year, Focus on Robots and AI

[Financial News]  

Tesla has finally decided to scrap the controversial, trouble-plagued Cybertruck. Instead, it plans to focus on its autonomous taxi, the Cybercab, as well as robots and artificial intelligence (AI).
Tesla CEO Elon Musk said on X, his social media platform, on the 6th (local time) that production of the Cybertruck at the Gigafactory in Texas would be gradually reduced and halted altogether by the middle of next year. Instead, the Texas Gigafactory will shift to ramping up Cybercab production.
According to the Financial Times (FT), Musk described the Cybertruck’s rugged exterior as a “futuristic battle tank” and said it was designed to be the “toughest” pickup truck on the market. He said the technology laid the groundwork for the Cybercab.
Design chief Wes Morrill also said on social media, “The Cybertruck will live on through the Cybercab as an incredible technology development platform.”
Earlier this year, Tesla halted production of its top-of-the-line Model S and Model X.
As it focuses the company’s resources on robots and AI, Tesla is scrapping vehicle models that do not contribute significantly to profitability.
Despite Musk’s boast that he would produce 250,000 to 500,000 units a year, the Cybertruck has become the biggest blemish on his record. Tesla unveiled it ambitiously in 2019 and launched it in 2023, but recalls and safety problems continued unabated.
Cox Automotive estimates that Tesla sold 11,586 Cybertrucks from the start of this year through September. Sales plunged 28% from the same period a year earlier. The Cybertruck accounted for just 1.6% of the U.S. electric-vehicle market.
Amid weak demand, Musk’s SpaceX became the Cybertruck’s biggest customer.
Although Tesla is scrapping the Cybertruck pickup, it is not withdrawing from the truck market entirely. After a long wait, the electric truck Semi finally began mass production last April.
As Chinese electric-vehicle makers gain ground, Tesla is expected to build its AI-powered Optimus robots, autonomous taxi Cybercab and electric truck Semi into core business lines.

[email protected] Song Kyung-jae Reporter