Tesla CEO Elon Musk has announced plans to end Cybertruck production by mid-2027 to scale up the autonomous Cybercab. The shift follows a significant drop in Tesla and SpaceX share prices after the recent US midterm election results.

Tesla's Strategic Shift to Autonomous Mobility

Tesla Chief Executive Officer Elon Musk has said the company will wind down Cybertruck production at its Gigafactory in Texas around the middle of 2027 to make room for increased manufacturing of its autonomous vehicle, Cybercab. In a post on social media platform X on Friday, Musk said the production shift would allow the company to expand Cybercab manufacturing, signalling a greater focus on autonomous mobility.

Cybertruck and Cybercab: Future of Tesla

The Cybertruck, an all-electric pickup truck with a distinctive stainless-steel exterior, was first unveiled by Tesla in November 2019. However, its first customer deliveries began only in November 2023. The vehicle was positioned as a futuristic alternative to conventional pickup trucks but has faced challenges in achieving the mass-market demand initially anticipated.

The Rise of the Cybercab

The Cybercab, meanwhile, is Tesla's purpose-built autonomous electric vehicle designed for its robotaxi network. Unveiled in October 2024, the two-seater vehicle is designed to operate without a steering wheel or pedals, reflecting Musk's broader ambition to build a driverless transportation network. The production shift comes as Tesla increasingly prioritises autonomous driving technology and robotics as key areas of future growth.

Market Impact After Midterm Elections

Meanwhile, shares of Musk-led companies faced significant selling pressure following the November 3 US midterm elections, in which Democrats secured control of Congress. The US midterm election results triggered a sharp sell-off in technology and artificial intelligence stocks, as investors feared that Democratic gains could bring tighter regulations and restrictions on data centre expansion and the development of Superintelligence infrastructure. SpaceX shares fell as much as around 9 per cent during Friday's trading session, while Tesla shares declined over 13 per cent during the session.

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