Elon Musk announced that Tesla will return deposits to some Cybertruck customers as the company moves to end production of the electric pickup truck. In a social media post, the Tesla CEO stated that the volume of orders for the vehicle currently exceeds the company’s manufacturing capacity.
The decision follows an announcement last week that Tesla intends to stop Cybertruck assembly at its Texas factory by mid-2027. Musk stated the factory space will be repurposed to increase production of the Cybercab, the company’s dedicated robotaxi line.
Musk wrote that the company will continue to manufacture the Cybertruck for approximately eight to nine months before the production line is shut down. While he did not specify the exact number of customers who will receive refunds, he noted that Tesla will "have to return deposits for a lot of people."
Wall Street analyst Dan Ives of Yorkville Ives & Co. told CBS News that the decision to end production was predictable due to the truck's high price and what he described as low demand. Musk, however, disputed claims that the vehicle was unprofitable, stating that the decision was based on the "opportunity cost" of Cybertruck's complexity compared to the potential value of Cybercab production.
For consumers, this represents a concrete change in their vehicle acquisition plans. Those with outstanding orders will likely see the return of their initial deposit funds to their bank accounts or credit cards, but they will lose their place in the queue for a vehicle Musk described as unique. The transition is expected to be completed in roughly eight to nine months, at which point the Cybertruck will no longer be manufactured at the Texas facility.
The shift sets a precedent for Tesla prioritizing its autonomous robotaxi technology over its existing electric truck line. This reallocation of resources to the Cybercab could influence the availability of future Tesla models and the overall electric vehicle market. What happens next is the final eight-month production window, followed by the mid-2027 deadline to cease operations at the Texas factory and the subsequent return of deposits to the remaining reservation holders.