Elon Musk insists Cybertruck demand is strong as Tesla scraps it

Tesla has decided to discontinue the production of its Cybertruck after deeming demand for the vehicle insufficient. Despite this, Tesla CEO Elon Musk has maintained that the company is not scrapping the Cybertruck due to unprofitability or lack of demand. Instead, Musk attributes the decision to the high opportunity cost of producing such a complex vehicle, stating that the value of producing more Cybercabs outweighs the benefits of continuing Cybertruck production.

Musk's tweet explaining the decision also notes that the Cybertruck order rate far exceeds the company's production rate, and that they will attempt to produce as many Cybertrucks as possible before shutting down the line. However, this has left many consumers with deposits that may now be returned. The company has not released specific sales figures for the Cybertruck, but based on Musk's earlier predictions and recent deliveries, it's clear that Cybertruck sales have fallen significantly short of Musk's expectations.

In 2023, Musk had predicted that Tesla would sell between 250,000 and 500,000 Cybertrucks annually, but as of the third quarter of 2026, Tesla had only delivered 8,295 units across its entire lineup of models. At this rate, the Cybertruck is not even a fifth of Musk's initial projected sales figure. While Musk may claim the decision is a victory, it's likely that the company would have been more confident in the Cybertruck's success if demand had been significantly higher.