Elon Musk says Tesla will end Cybertruck production around the middle of next year. Slow sales and the need to free factory space and capital for Cybercab and other growth bets appear to drive the decision.
Tesla will stop building the Cybertruck next year, according to a new post from CEO Elon Musk. Musk said the company will wind down production of the Cybertruck at Gigafactory Texas around mid-next year, according to The Motley Fool.
Musk formally unveiled the Cybertruck in 2019, but production did not begin until 2024.
Slow sales are largely to blame, the Fool reports. Estimates suggest Tesla sells only a few thousand units per quarter, far from the success of the Model 3 and Model Y.
Cybercab gets the factory space
Capital also plays a role. The Fool notes that Tesla's $1.4 trillion valuation does not rest on its success as an automaker. Instead, the market is pricing in growth from AI, humanoid robots and self-driving cars, which will all be capital-intensive to scale.
Ending a low-volume model frees up capital and factory space. Musk said the move is meant to make room for increased Cybercab production.
Some experts believe the robotaxi market will eventually be valued at $8 trillion to $10 trillion globally, the Fool says. Success there could move the needle for Tesla in a way Cybertruck demand never could.
Source: The Motley Fool
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