Tesla to refund Cybertruck deposits as production ends in mid-2027

Key points

• Musk announced that Tesla will return deposits to 'a lot of people' as the Cybertruck line shuts down in approximately eight months.
• Production will end in mid-2027 to prioritize the Cybercab, a self-driving vehicle without pedals or a steering wheel.
• Musk disputed reports that the Cybertruck was unprofitable, arguing that the complexity of the truck outweighs the value of incremental Cybercab production.
• The Cybertruck was launched in 2019 with a starting price of $69,000, but current base models cost $82,490.
• Analysts noted that the decision frees up resources for Musk to focus on robotics and autonomous transportation.

Background

The Cybertruck was introduced in 2019 as a radical reimagining of the pickup truck segment. It faced criticism for its angular design and high price, with the base model eventually rising to over $82,000. Sales remained significantly below Tesla's initial projections of 250,000 units per year. The vehicle is now being discontinued as part of Tesla's broader strategic shift away from traditional electric vehicles toward autonomous robotaxis and AI.

How outlets are covering it

CBS News and Yahoo Finance reported that Musk claimed order rates far exceed production capacity, necessitating refunds for some buyers. However, Yahoo Finance and Slate Magazine highlighted that actual sales were roughly 71,000 to 75,000 units since 2023, far below the planned capacity. Slate Magazine characterized the Cybertruck as a commercial failure that symbolized Musk's shift from climate-focused EVs to right-wing politics. Dan Ives of Yorkville Ives & Co. told CBS News that the decision was predictable due to the truck's high price and low demand. Musk, however, insisted the truck was profitable and that the decision was driven by the opportunity cost of producing the Cybercab.

Why it matters

The discontinuation of the Cybertruck marks a significant pivot for Tesla, shifting focus from consumer electric vehicles to autonomous robotaxis. It highlights the risks of high-priced, niche products in a competitive market and reflects Musk's broader strategy to prioritize AI and robotics over traditional automotive manufacturing.

What to watch

Tesla will continue producing Cybertrucks for another eight to nine months before fully shutting down the line. The company will then focus on scaling production of the Cybercab robotaxi. Customers who cannot receive their vehicles will receive refunds of their $1,000 deposits.