Elon Musk Is Winding Down Cybertruck Production to Build Cybercabs. The Model S and Model X Already Gave Up Their Factory Space to Robots.

Tesla CEO Elon Musk announced on X that the company will cease Cybertruck production at its Texas factory in mid-year to make way for Cybercabs, the automaker's two-seat robotaxi. Musk did not specify if Tesla would build the truck elsewhere. This move comes after Tesla halted Model S and Model X production in January, reallocating factory space to Optimus robot production in Fremont, California.

While this appears to be a significant shake-up in Tesla's lineup, measured by sales, it is not. Only 3% of Tesla's 1.64 million deliveries in 2025 were vehicles other than the Model 3 and Model Y, which include the Model S, Model X, and Cybertruck. The Cybertruck line alone could have produced over 125,000 vehicles annually, accounting for nearly 10% of Tesla's car plant capacity.

However, Tesla only manufactured 53,900 vehicles outside the Model 3 and Model Y in 2025, representing less than a quarter of that capacity. Cybertruck sales have also been low, with estimates around 20,000 units in 2025, down from 39,000 in 2024. Even if the Cybertruck is discontinued, Tesla's automotive sales revenue only decreased by 1% year over year in Q3.

Tesla's automotive business still generates 72% of its revenue, with the Model 3 and Model Y accounting for 98% of third-quarter deliveries. The stock price is based on the assumption that both Cybercab and Optimus will become profitable businesses, but their production is still in the early stages, and sales figures are not yet available.

The high price-to-earnings ratio of Tesla suggests that the market believes in the future success of these products, but the current valuation may be too high given Tesla's automotive business performance.