Tesla Cybertruck is EV pickup market's latest casualty

Tesla's Cybertruck, once touted as the future of electric pickup trucks, is set to be discontinued next year. CEO Elon Musk announced in a social media post that the company will wind down production at its Austin, Texas factory to focus on producing Cybercab robotaxis. The Cybertruck's sales have declined 28% this year, with only about 11,600 units sold through September, far below the 250,000-truck annual target Musk once predicted.

The market for large electric pickups has proven challenging for Tesla's competitors, with GM and Ford's electric trucks struggling to match the demand of Tesla's Cybertruck. Despite their initial hopes, these automakers have found it difficult to make electric trucks both affordable and functional for consumers. Ford CEO Jim Farley acknowledged the economic pressures facing electric vehicles, stating that larger vehicles with bigger batteries face higher costs and lower profit margins.

In response, Ford has shifted its focus to a smaller electric pickup, the Fathom, which will be priced around $28,000. Meanwhile, Stellantis is developing an extended-range electric pickup, which will incorporate a gas-powered generator to recharge the battery while driving.