Tesla returns Cybertruck deposits

In Austin, Texas, Tesla CEO Elon Musk announced on Monday that the company will return deposits to a large number of Cybertruck customers. This move accompanies the company's plan to wind down production of the electric pickup truck. Musk posted the update on social media, noting that the order rate for the vehicle far exceeds the factory's current production capacity.

The decision follows an announcement last week stating that Tesla will stop building the Cybertruck at its Texas facility by mid-2027. The goal is to clear space for increased production of the Cybercab, the company's robotaxi model. Musk stated that the factory will attempt to build as many trucks as possible before closing the assembly line in approximately eight months. He acknowledged that many buyers will receive their money back instead of a vehicle.

Dan Ives, senior managing director at Yorkville Ives & Co., told CBS News that the high price and low demand for the truck made the outcome predictable. He noted that ending production allows Musk to concentrate on robotics and robotaxis. Ives described the situation as the writing on the wall for the model.

Musk disputed reports that the Cybertruck was being retired because it was unprofitable. In his post, he explained that the complexity of building the truck creates an opportunity cost that is outweighed by the value of producing more Cybercabs. The company originally launched the Cybertruck in 2019 with a starting price of $69,000. On Saturday, Musk confirmed on X that production will continue for another eight to nine months. He added that there will never be another vehicle like it.