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Tesla will refund deposits to many customers who ordered its Cybertruck electric pickup because outstanding orders exceed the number of vehicles the company can produce before shutting down the truck’s production line next year.
Chief Executive Officer Elon Musk disclosed this on Monday in a post on X, saying the company would try to fulfil as many orders as possible before winding down production at its Texas factory in about eight months.
The refund decision comes days after Musk announced that Tesla would wind down Cybertruck production around mid-2027.
Tesla to refund customers as orders exceed production capacity
Musk said the company would prioritise fulfilling as many outstanding Cybertruck orders as possible before shutting down the production line, although some customers would not receive their vehicles.
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- “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,” he said in a post on X on Monday.
The announcement followed Musk’s disclosure on Saturday, November 7, that the Cybertruck order backlog was significantly larger than Tesla could fulfil before dismantling the production line for the planned Cybercab expansion.
- “The Cybertruck order backlog is currently far more than Tesla can make before dismantling the line for Cybercab expansion around June/July next year,” Musk said in his post.
He also said Tesla would add an extra production shift to increase output and complete as many outstanding orders as possible before the line is dismantled.
Tesla shifts focus to Cybercab production
Musk announced the Cybertruck production wind-down on Friday, November 6, saying Tesla would redirect resources at its Texas Gigafactory to make room for increased Cybercab production around the middle of 2027.
The announcement marked a major shift for the electric vehicle maker, which had previously positioned the Cybertruck as a major addition to its vehicle lineup.
It also reflects Tesla’s growing focus on robotics and autonomous driving as Musk seeks to expand the company beyond its traditional electric vehicle business.
Musk did not clarify whether Cybertruck production would end entirely or be moved to another facility. However, Tesla’s Austin plant is the only known facility equipped to manufacture the pickup’s specialised components.
Cybertruck sales fall short of Musk’s expectations
Tesla began delivering the Cybertruck in late 2023, but sales have fallen significantly short of Musk’s earlier projections.
US sales dropped 48% to 20,237 units in 2025, down from 38,965 in 2024, according to Kelley Blue Book. This was far below Musk’s earlier projection that annual Cybertruck sales could reach 250,000 vehicles.
The pickup has also faced repeated recalls and quality problems since its launch. Tesla issued 11 recalls for the Cybertruck between its late-2023 launch and November 2026, according to the National Highway Traffic Safety Administration.
Tesla’s AI ambitions and Musk’s market fortunes
Tesla’s planned Cybertruck production shutdown comes amid wider developments in the company’s artificial intelligence ambitions and the financial performance of its Chief Executive Officer, Elon Musk.
- Nairametrics reported in March 2026 that Musk said Tesla could finalise the design of its next-generation AI6 chips by December 2026.
- The chips are expected to support the company’s self-driving vehicles and humanoid robots, reflecting its growing investment in artificial intelligence and autonomous technology.
- Beyond its technology investments, Tesla’s market performance has also had a significant impact on Musk’s personal wealth.
Nairametrics reported in October 2026 that Musk regained trillionaire status after his wealth increased by $88 billion, supported by a rally in SpaceX and Tesla shares. Tesla shares gained more than 3% ahead of the company’s quarterly earnings announcement.
