Austin: Tesla is preparing to refund Cybertruck deposits to many customers as outstanding orders exceed production capacity, with the electric vehicle manufacturer planning to wind down production at its Texas factory by mid-2027.
Elon Musk, Tesla Chief Executive Officer stated that the company would attempt to fulfil as many outstanding orders as possible before shutting down the production line in approximately 8 months. However, the number of pending orders is significantly higher than the vehicles Tesla can produce within the remaining period. As a result, many customers will have their deposits returned.
The announcement follows Tesla’s plan to introduce an additional production shift to address the backlog of Cybertruck orders. Musk had previously indicated that the company would increase manufacturing activity to complete as many pending orders as possible before dismantling the production line next year.
The planned production wind-down is scheduled for mid-2027. Tesla intends to redirect resources currently allocated to the electric pickup truck towards expanding production of the Cybercab robotaxi. The autonomous vehicle is a central part of the company’s ambitions to develop and expand its self-driving technology.
The decision marks a significant shift in Tesla’s manufacturing priorities. The company is moving away from the Cybertruck production programme while preparing to allocate more factory capacity and resources to its autonomous vehicle plans.
Tesla began delivering the Cybertruck in late 2023. The vehicle attracted considerable attention ahead of its launch, with Musk previously projecting that annual sales could reach 250,000 units. However, actual demand has fallen well below those expectations.
The latest decision also puts the spotlight on the challenges facing the Cybertruck programme. Although the number of outstanding orders exceeds Tesla’s available production capacity, the company is preparing to discontinue the current manufacturing line rather than continue production at its existing facility.
With the shutdown approaching, Tesla is attempting to clear part of the order backlog through an additional production shift. However, customers whose orders cannot be fulfilled before the planned closure are expected to receive deposit refunds. The transition towards Cybercab manufacturing will represent a new direction for Tesla as the company shifts its production focus towards autonomous transportation.
ALSO READ | Australia experiences rare spring snow across alpine regions
