Suryaa Business Desk: Tesla has decided to gradually reduce and eventually cease production of its Cybertruck at the Texas Gigafactory. Tesla CEO Elon Musk has officially confirmed this development.
The decision follows challenges related to manufacturing costs and technical complexities. The use of ultra-hard stainless steel body panels and a complex assembly line have significantly increased production costs, impacting company margins. Analysts suggest that difficulties in achieving cost reductions during large-scale production and slowed demand in the consumer segment due to high pricing contributed to this move.
As part of its future strategy, Tesla intends to shift resources toward next-generation autonomous projects, including the Cybercab (robotaxi), the AI-based humanoid robot Optimus, and entry-level electric vehicles. Company sources indicated that assembly lines at the Texas Gigafactory will be retooled for these future products. Tesla is shifting its focus toward vehicles expected to achieve higher market volumes rather than models with lower profitability.
