Tesla (TSLA) will wind down Cybertruck production at Gigafactory Texas around mid-2027, Elon Musk said on X on Friday. The freed space goes to Cybercab, a two-seat robotaxi already under federal examination.
Whether the swap helps TSLA shareholders hinges on a vehicle Tesla has not yet sold to individuals. The stock had already fallen 11% on Thursday, before the post.
Why is Cybercab drawing federal scrutiny?
Cybertruck has been recalled more than once and repriced repeatedly, It has been reported. Cybercab, however, faces a different obstacle.
Tesla began charging for rides in Austin on the Sept. 3 Cybercab launch. Hours later, the National Highway Traffic Safety Administration (NHTSA) opened an audit, Electrek reported.
The car lacks a permanently attached steering wheel, pedals, and mirrors. Tesla certified it as compliant with all applicable federal safety standards and did not seek an exemption, the report said.
NHTSA escalated on Sept. 10 with a Special Order, a formal legal demand for sworn answers. Incomplete replies risk penalties of up to $139 million, the report said.
Will ending Cybertruck production pay off for TSLA?
Tesla’s deck lists installed Texas capacity above 125,000 vehicles a year each for Cybertruck and Cybercab. Still, installed capacity does not equal actual output.
Meanwhile, third-quarter deliveries of Tesla’s other models fell 48% year over year to 8,295. That group covers Cybertruck, Semi, Model S, and Model X, Electrek said.
Operating income fell 56% to $718 million as research and development spending jumped 69%, Electrek reported. That followed a second-quarter profit miss.
Musk told the earnings call most Cybercabs will be owned by Tesla and offered as a ride service, CNBC reported. However, that structure could slow payback, since revenue would arrive per ride rather than at sale.
TSLA fell 11% on Thursday, which Bloomberg tied to a post-midterm selloff in Musk-linked companies. Shares are down about 24% this year.
Third-quarter automotive revenue fell 3% to $20.56 billion, CNBC reported. As a result, the swap ties more of Tesla’s valuation to autonomy than to vehicle sales. The read would break if NHTSA limits Cybercab deployment or volumes lag.
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