Musk rejected claims that the Cybertruck was unprofitable, arguing that the value of expanding Cybercab production ‘vastly outweighs’ the opportunity cost of continuing Cybertruck manufacturing.
- Musk said the Cybertruck order rate far exceeds production rate.
- Tesla began its Robotaxi service to San Antonio, Texas on Monday, with rides starting at 5 a.m. Central Time.
- Sawyer Merritt said the new service area covers about 275 square miles, making it Tesla’s largest Robotaxi service area at launch.
Tesla (TSLA) CEO Elon Musk said on Monday that the company would refund deposits to many Cybertruck customers as it prepares to discontinue production of the electric pickup in about eight months to expand Cybercab manufacturing.
“The Cybertruck order rate far exceeds our production rate. We will try to make as many as possible before shutting down the line in about 8 months, but will have to return deposits for a lot of people, Musk said in a post on X.
TSLA shares were down about 0.2% at the time of writing.
Musk Rejects Suggestions That Cybertruck Is Unprofitable
Earlier, Musk said Tesla would wind down Cybertruck production at Gigafactory Texas around mid-2027 to increase Cybercab production. Due to a large backlog, Musk added that the company would add an extra shift “to try to get all orders done in time.”
Musk said the decision was based on allocation of manpower, equipment and factory space, but rejected suggestions that the Cybertruck was unprofitable, “but rather that the opportunity cost of the complexity of Cybertruck is vastly outweighed by the value of incremental Cybercab production.”
However, Cybertruck sales have struggled to meet Musk’s expectations, with U.S. sales slumping 48% in 2025, according to Kelley Blue Book data cited by Reuters.
Robotaxi Makes San Antonio Debut
The announcement came as Tesla opened up its Robotaxi service to San Antonio, Texas, with rides starting at 5 a.m. Central Time.
According to well-known Tesla investor and influencer Sawyer Merritt, the new service area covers about 275 square miles, making it Tesla’s largest Robotaxi service area at launch and slightly exceeding Austin’s 272 square miles.
San Antonio becomes the eighth U.S. city offering Tesla’s driverless Robotaxi service, joining Austin, Dallas, Fort Worth, Houston, Miami, Orlando, and Tampa.
Retail Remains ‘Extremely Bearish On TSLA
Retail sentiment surrounding TSLA on Stocktwits remained ‘extremely bearish’ over the past 24 hours.
TSLA shares have slumped more than 18% so far in 2026, the worst-performing stock in the MAG7 cohort.
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