Tesla will have to refund deposits to many Cybertruck customers as orders significantly exceed its production capacity.
The company’s Chief Executive Officer, Elon Musk, disclosed this in a post on X on Monday.
“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.
“This is not a case of Cybertruck being unprofitable, as has been misreported by legacy media, but rather that the opportunity cost of the complexity of Cybertruck is vastly outweighed by the value of incremental Cybercab production,” he wrote.
Musk did not disclose the number of customers who would receive refunds or the total amount involved.
The development follows his announcement on Friday that Tesla plans to begin winding down Cybertruck production at its Texas factory around mid-2027.
The move is expected to free up space for increased production of Cybercabs, the company’s robotaxi vehicles.
Musk also said Tesla would introduce an additional production shift to clear outstanding Cybertruck orders before dismantling the production line, Reuters reported.
The Cybercab is a two-seat vehicle designed without a steering wheel or pedals. Tesla began production at its Texas factory earlier this year and started offering paid rides in Austin in September.
The company unveiled the stainless steel-bodied Cybertruck in 2019 and began deliveries in late 2023, following several delays. Musk had previously projected that the electric pickup could achieve annual sales of 250,000 units.
