Tesla will refund deposits to many customers who booked its Cybertruck electric pickup. "The Cybertruck order rate far exceeds our production rate," Elon Musk said on Monday. The company plans to stop production at its Texas factory by mid-2027 to focus on the new Cybercab autonomous vehicle instead.
Tesla will have to refund deposits to a large number of customers who booked its Cybertruck electric pickup, as orders exceed the company's production capacity before it winds down manufacturing next year, CEO Elon Musk has said.
"The Cybertruck order rate far exceeds our production rate," Musk said in a post on X on Monday. He added that Tesla would try to manufacture as many vehicles as possible before shutting down the production line in about eight months, but would have to return deposits to many customers.
The comments come days after Musk announced that Tesla would discontinue Cybertruck production at its Texas factory around the middle of 2027. The move is aimed at freeing up manufacturing capacity for the company's Cybercab autonomous vehicle, which is central to its self-driving ambitions, according to Reuters.
Musk had earlier said that Tesla would introduce an additional production shift to fulfil pending Cybertruck orders before dismantling the production line.
Unveiled in 2019, the electric pickup featured an unconventional angular design and was projected to eventually achieve annual sales of 250,000 units. However, its actual sales have remained significantly below that target.
US Cybertruck sales fell 48% to 20,237 units in 2025, from 38,965 in 2024, according to estimates by Cox Automotive cited by CNBC.
Tesla currently manufactures the Cybertruck exclusively at its Texas facility. The plant has the capacity to produce more than 125,000 pickups annually, but the company has been making around 20,000 units a year, Bloomberg reported.
The Cybertruck accounts for roughly 1% of Tesla's total vehicle volume, according to Bloomberg. Its weaker-than-expected sales have made it difficult for the company to utilise the production capacity dedicated to the pickup.
Musk plans to redirect manufacturing resources at the Texas Gigafactory towards the Cybercab, a two-seat autonomous vehicle that does not have a steering wheel or foot pedals.
Tesla began manufacturing Cybercabs at its Austin factory this year and has introduced the vehicle through its robotaxi service. However, US auto-safety regulators are examining the process and technical information used by the company to certify that the vehicles meet federal safety standards, Bloomberg reported.
The Cybertruck phase-out also follows Tesla's decision earlier this year to discontinue its higher-priced Model S and Model X vehicles. The Model Y SUV and Model 3 sedan account for the bulk of the company's vehicle sales.
Tesla's Cybertruck programme has faced several challenges since its launch, including production difficulties, quality concerns and multiple recalls. The 2024 model was subject to 11 voluntary recalls, according to the National Highway Traffic Safety Administration's website. These included issues involving a potentially trapped accelerator pedal, software defects and an inverter fault that could cause a sudden loss of drive power, CNBC reported.