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Musk announced that Tesla’s Texas factory will gradually cease production of the Cybertruck to switch to Cybercab production, and estimated that SpaceX’s revenue growth will reach an annual rate of US$500 billion in 2027.
Tesla CEO Musk said on Friday on X that the Texas plant will gradually phase out production of electric pickup trucks around mid-2027.cybertruck Freeing up production capacity to increase production of Cybercab, the self-driving taxis. He predicted at the Barron Investments annual conference in New York the same day,spacex If converted to an annual rate, monthly revenues will exceed US$500 billion in December 2027.
Musk described the Cybertruck as the best car Tesla has ever made and described the end of production at the Texas plant as “the end of an era.” Reuters reported that it is still unclear whether Tesla will move Cybertruck production to other factories or indeed stop production altogether. The Austin plant is the only Tesla factory known to make specific parts for this car.
Cybertruck will begin delivering vehicles in late 2023 and Musk estimates annual sales could reach 250,000 vehicles. However, data from automotive research firm Cox Automotive shows that Tesla will sell only 20,000 vehicles in the United States in 2025, a 48% decline from last year. About 11,600 vehicles were delivered in the first nine months of this year, 28% less than the same period last year.
When Tesla released the Cybertruck in 2019, it announced a starting price of less than $40,000, but this year’s cheapest model is priced at more than $80,000. High prices, frequent recalls, and limited purchasing momentum in the US electric pickup truck market have made it difficult to improve sales.
CyberCab, which has taken over production capacity, is a two-seat self-driving taxi without a steering wheel and pedals. Tesla began offering paid rides in Austin with a limited number of CyberCabs in September. The U.S. National Highway Traffic Safety Administration launched an investigation the same month to investigate Tesla’s premise that the CyberCab complied with federal vehicle safety standards. It remains to be seen whether CyberCab can expand its operations.
SpaceX itself is one of the big buyers of the Cybertruck. According to SpaceX’s listing application documents, SpaceX will purchase the Cybertruck from Tesla for US$131 million at a recommended selling price in 2025.
“Barron’s” reported that Musk said at the Barron’s Investment Annual Conference on Friday that SpaceX’s third-quarter revenue increased by 87% compared with the previous quarter. He estimates that the fourth quarter could see growth of about 70% compared to the previous quarter and the first quarter of next year could see a similar growth. Based on this growth, revenue in the first quarter of next year will be approximately US$42 billion, higher than analysts’ current estimate of US$33 billion.
The US$500 billion Musk mentioned is converted by multiplying the single-month revenue in December 2027 by 12, which means that revenue for that month could exceed approximately US$41.7 billion. He also stressed that this was just his judgment on the revenue trend and he had not made any promises.
After the US midterm elections, investors were worried about greater restrictions on data center expansion, and the stock prices of Tesla and SpaceX fell for a while. Musk also acknowledged at the meeting that there is strong opposition to data centers locally, but he believes SpaceX’s Colossus I data center in Memphis has boosted the local economy.
SpaceX’s share price rose 8.6% on Friday, but fell only 0.3% on the week; Tesla also rebounded 4.2% on Friday, but still fell 10.4% on the week.
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Musk said the Texas factory will gradually phase out Cybertruck production around mid-2027 with the aim of shifting production capacity to the Cybercab, a two-seat self-driving taxi, suggesting Tesla is reallocating the factory’s resources.
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After deliveries of the Cybertruck in late 2023, only about 20,000 units were sold in the United States in 2025, a 48% decline from last year, and only about 11,600 units were sold in the first nine months of this year; High prices, recalls and weak market demand reduced sales.
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He said at the Barron’s Investment Annual Conference that if calculated based on growth trends, SpaceX’s one-month revenue by December 2027 could exceed US$500 billion at an annual rate, and this is only his judgment, not a promise.
