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Tesla to wind down Cybertruck production at Texas factory as it struggles to win appeal

Via Reuters

Tesla to wind down Cybertruck production at Texas factory as it struggles to win appeal Tesla Cybertrucks are parked at a SpaceX facility, in Starbase, Texas, U.S., April 21, 2026. REUTERS/Carlos Barria · Reuters By Ananya Palyekar and Akanksha Khushi Fri, November 6, 2026 at 4:42 AM EST 2 min read TSLA +1.97% Trade Tesla on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Nov 6 (Reuters) - Tesla plans to wind down Cybertruck production at its Texas gigafactory around the middle of next year, CEO Elon Musk said on Friday, ‌as the futuristic model once touted as a rival to legacy pickup trucks struggles to win ‌mass-market appeal.

Musk said in an X post the production wind-down would enable the automaker to accommodate increased output of its newly launched Cybercab ​model, which the billionaire has made central to Tesla's robotaxi ambitions.

While it was not immediately clear whether Cybertruck production would be moved to another facility or phased out entirely, the automaker's Austin plant is the only known Tesla facility equipped to manufacture the model's specialized components.

Tesla did not immediately respond to a Reuters request for comment sent outside ‌regular business hours.

"Cybertruck fleet will be around ⁠for a long time," Musk said in response to a user on X, calling the model the "best vehicle Tesla has ever made" and the wind-down the "end of an era".

Musk had, during Cybertruck's launch in 2023, touted it as a futuristic competitor to pickup trucks from General Motors and Ford. But the vehicle has struggled to meet those expectations.

Often described as polarizing, Cybertruck's unorthodox sharp-edged stainless-steel design has limited ​its ​prospects outside the US. Regulatory approval became difficult to come ​by in parts of Europe, depriving Tesla ‌of major markets that could have helped turn the pickup into a higher-volume product.

The model has also faced multiple recalls and quality-control issues, while Tesla has repeatedly revised prices.

Tesla does not officially disclose individual sales figures for the Cybertruck. Instead, the automaker groups it into an "Other Models" category, which accounted for just 8,295 deliveries in the third quarter, down from 12,364 deliveries in the second quarter.

"Cybertruck was an incredible technology development platform and lives on through ‌Cybercab," Cybertruck lead engineer Wes Morrill said on X.

The Cybercab, which has butterfly doors and no steering wheel, pedals ​or mirrors, is one of Musk's key bets ​in his push to turn Tesla into an AI and robotics company.

He has said ‌he sees it as Tesla's main autonomous model ​within a larger driverless network ​and that it will eventually be the company's highest-volume vehicle, supplying a global network of robotaxis.

After years of delays to Musk's self-driving targets, Tesla began offering paid rides in a small fleet of Cybercabs ​in Austin in September. However, the ‌automaker still has to answer the US auto safety agency's questions on whether it properly self-certified ​Cybercab to demonstrate compliance with federal motor vehicle safety standards.

(Reporting by Ananya Palyekar and Akanksha Khushi ​in Bengaluru; Editing by Jochelle Mendonca and Janane Venkatraman)

Read original at Yahoo Finance News

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