Tesla to halt Cybertruck production as market shifts toward smaller electric vehicles
Tesla will stop making the Cybertruck at its Texas Gigafactory next year, reflecting a broader industry move toward smaller EVs that could ease battery supply constraints and lower vehicle costs.
Tesla announced that production of the Cybertruck at its Texas Gigafactory will end next year. The model, which relies on a 123-kilowatt-hour battery weighing about 1,600 pounds, has faced weak sales and multiple recalls, according to the company.
Industry analysts see the cancellation of both the Cybertruck and Ford’s F-150 Lightning as an indication that the era of large electric trucks is receding. Automakers are increasingly focusing on compact and midsize EVs that use smaller, less expensive battery packs. Ford plans to introduce the sub-$30,000 Fathom pickup next year, a vehicle roughly the size of its gas-powered Maverick, while its Lightning will return as an extended-range model.
Startup Slate is preparing a tiny electric pickup that can be converted into an SUV, with a base price below $25,000, and the Rivian R2, launched this year, features an 88-kilowatt-hour battery that is lighter than the company’s flagship R1S. Smaller models dominate the current top-10 EV sales in the United States, with crossovers, sedans and midsize SUVs accounting for most of the market.
The shift to smaller EVs could help lower the average transaction price, which Cox Automotive reports is $55,800 for new models, by reducing the cost of the battery—the most expensive component of an electric vehicle. It also eases pressure on the limited battery supply chain.
Policy context remains uncertain. After the administration of President Donald Trump eliminated federal EV incentives last year, sales fell, though rising gasoline prices and geopolitical tensions have sparked renewed consumer interest. While a Democratic-controlled Congress may favor reinstating incentives, the likelihood of such measures returning under the current administration is described as low.
Elon Musk indicated that ending Cybertruck production will free capacity for the upcoming Cybercab, which is expected to use a 48-kilowatt-hour battery, further underscoring the industry’s move toward lighter, more affordable electric vehicles.
Additional reporting by Aarian Marshall.