Tesla (NASDAQ: TSLA) CEO Elon Musk said in an article on X on Friday that the company will end Cybertruck production at its Texas factory around the middle of next year. The goal is to make room for more Cybercabs, Tesla’s two-seater robo-taxi. Musk did not say whether Tesla would build the truck elsewhere.
The Cybertruck is not the first vehicle to give up its place this year. In January, Musk announced that Tesla would stop production of the Model S and Model X. The company has since replaced those lines at its Fremont, Calif., factory with production of its Optimus humanoid robot.
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On the face of it, this is a big shake-up in the Tesla lineup. But this is not the case when measuring sales.
Vehicles other than the Model 3 and Model Y (mainly the Model S, Model
Measured by factory space, the change is much greater. And I think the gap between those two metrics matters more for the stock than it does for the auto sector.
Image source: Getty Images.
Lines designed for much more
Showing how much space these three vehicles take up, Tesla’s installed capacity chart at the end of 2025 pegged its Model S and Model
But Tesla only made 53,900 vehicles outside of Models 3 and Y in all of 2025, less than a quarter of what those lines were built for. And deliveries in this group fell 40% from 2024, to 50,850.
The decline continued into 2026. Deliveries of other models fell from 16,130 in the first quarter (likely boosted by final orders of the S and X) to 12,364 in the second quarter and 8,295 in the third. The third quarter total was down 48% year over year.
The Cybertruck, of course, was never close to filling out its lineup. Tesla doesn’t break down sales by model, but Cox Automotive has estimated U.S. Cybertruck sales at about 20,000 in 2025, up from about 39,000 in 2024. Musk once said the truck would one day sell 250,000 a year.
In other words, even if the Cybertruck disappears forever, Tesla is giving up very little to free up that space. Tesla’s auto sales revenue fell just 1% year-over-year in the third quarter. And its quarterly report linked slightly lower deliveries, mainly to fewer Model S and Model X sales.
Arguably, divesting underutilized lines to new products is a good decision.
What replaces them?
In Fremont, Tesla said in its third-quarter update that Optimus production had started on its high-volume lines, calling the robots coming out of them its first production-quality robots. The plan, presented in January, envisages that this first line will one day manufacture 1 million robots per year.
In Texas, Cybercab production began earlier this year on a Tesla line that produces more than 125,000 vehicles per year, matching the Cybertruck line it will take space on. Tesla has started adding these Cybercabs to its own Robotaxi fleet in Austin.
Neither product has its own revenue line in Tesla’s bottom line yet. Tesla made about $104 billion in revenue over its last four quarters, about 72% of which still came from its automotive business. The Model 3 and Model Y accounted for 98% of third-quarter deliveries. And total auto revenue, which also includes regulatory credits, fell 3% year-over-year in this quarter.
Tesla stock already assumes the trade pays off
The stock price, however, is priced as if both new products will be successful. With shares trading at around $358 as of this writing, Tesla’s price-to-earnings ratio is above 160 based on 2027 earnings forecasts. In comparison, Tesla’s forward price-to-earnings ratio is S&P500 (SNPINDEX:^GSPC) is approximately 19.
An auto company with declining revenues cannot sustain such a high price-to-earnings ratio on its own. This only makes sense if Cybercab and Optimus become large, profitable companies.
Of course, Tesla could achieve this. A line of robots targeting 1 million units per year would be a huge business if demand materializes. But production of Optimus has only just begun, and Tesla hasn’t said what either of these new products would bring in.
Ultimately, the Cybertruck decision makes sense for the company. Still, it shows how much the stock’s value now depends on products for which Tesla doesn’t yet report sales. Compared to Tesla’s auto business today, I think the stock is still way overpriced.
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Daniel Sparks has clients with positions in Tesla. The Motley Fool Ranks and Recommends Tesla. The Motley Fool has a disclosure policy.
Elon Musk ends production of Cybertrucks to build Cybercabs. The Model S and Model X have already ceded their factory space to robots. was originally published by The Motley Fool
