Tesla Ditches Cybertruck for Robotaxis, Robots

Tesla is ceasing Cybertruck production at its Texas facility around mid-2026 to accommodate more Cybercab robotaxis. This strategic shift comes as the company also phased out Model S and X production earlier in 2026, repurposing those assembly lines for its Optimus humanoid robots.

Despite the significant factory space these models occupied, they accounted for only about 3% of Tesla's 2025 deliveries. The installed capacity for Model S, X, and Cybertruck lines exceeded 225,000 vehicles annually, yet actual production in 2025 was under a quarter of that capacity.

In Fremont, Optimus production has commenced on high-volume lines with a target of one million units yearly. Concurrently, Cybercab production is underway in Texas, with the company already integrating these vehicles into its Austin-based Robotaxi fleet.

The stock's current valuation, with a price-to-earnings ratio exceeding 160 based on 2027 forecasts, suggests investors are banking on the success of Cybercab and Optimus. However, the automotive business alone, facing declining revenue, cannot justify this valuation, highlighting the stock's dependence on these nascent product lines.