Elon Musk has pushed back against reports that Tesla's Cybertruck is losing money, even as the company prepares to halt production of the electric pickup within the next eight months. In a post on X, Musk stated that the order rate for the Cybertruck "far exceeds our production rate," and that Tesla will build as many units as possible before shutting down the line.
The decision to wind down Cybertruck manufacturing at Tesla's Gigafactory in Texas, announced last Friday, is part of a strategic pivot toward the Cybercab, a two-seat autonomous vehicle that Musk has described as central to Tesla's future. Musk explained that the "opportunity cost of the complexity of Cybertruck is vastly outweighed by the value of incremental Cybercab production," and that the company needs to focus on scaling the Cybercab.
When questioned about the possibility of expanding factory capacity instead of halting Cybertruck production, Musk responded that it is "insanely hard to build a high-volume factory," suggesting that reallocating existing capacity is more practical.
The Cybertruck, known for its angular stainless-steel design, began deliveries in late 2023 after years of delays. Despite its high profile, sales have lagged initial expectations. According to data cited by Reuters, Tesla sold 20,237 Cybertrucks in the U.S. last year, a 48% decline from 38,965 units in 2024. This figure falls far short of Musk's annual sales target of 250,000 units.
Regulatory hurdles have also limited the Cybertruck's market reach. Safety experts have noted that its sharp design could make it difficult to gain approval in Europe due to pedestrian impact regulations.
Musk's defense of the Cybertruck comes at the end of a turbulent week for both Tesla and SpaceX. The midterm elections, which saw Democrats gain control of both chambers of Congress, were seen as a setback for Musk, a major Republican donor. Tesla shares dropped more than 10% in a single session amid a broader post-election sell-off, while SpaceX shares also experienced volatility before recovering.
Despite the challenges, both Tesla and SpaceX were up in premarket trading on Monday. Tesla has not released detailed public figures on Cybertruck profitability, but the company has indicated it will prioritize higher-volume programs as it accelerates its push into autonomy and robotics.
Musk also noted that Tesla will have to return deposits to many customers who have placed orders for the Cybertruck, as the company will not be able to fulfill all existing orders before the production line shuts down.
This article is for informational purposes only and does not constitute financial advice.
