Tesla Inc. will refund Cybertruck deposits for some customers because it has more orders than it can process before ending production of the divisive pickup next year, according to Chief Executive Elon Musk.

“The Cybertruck order rate far exceeds our production rate,” Musk wrote Monday in a post on X, without providing specific details. 

He added that the model was not unprofitable and the decision to cancel was driven by the “opportunity cost” in how the manufacturing capacity is utilized.

“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.

Musk announced last week that Tesla would stop making the Cybertruck at its Texas plant around the middle of 2027 to free up capacity for its Cybercab autonomous vehicle.

Cybertruck sales have fallen well short of demand projections and Tesla is making only a fraction of what the facility is capable of producing.

The angular vehicle has been polarizing with car buyers and stands in contrast to the curvy designs of its other consumer models.

The automaker has been paring the more expensive and slower-selling models from its lineup — including killing off the Model S and Model X this year — to refocus on business lines including artificial intelligence, robotics and autonomous vehicles. 

The vast majority of Tesla’s sales in the core auto business come from two vehicles: the Model Y SUV and the Model 3 sedan.

The company’s stock was down 20% this year through Friday’s close, compared with a 7.8% gain in the Stardard & Poor’s 500 Index.

source: latimes.com