World's first trillionaire Elon Musk to wind down Tesla's Cybertruck production after 48% sales plunge, missing chance to enter Africa's growing EV market

Tesla plans to wind down Cybertruck production at its Texas factory in 2025, according to Elon Musk. The decision aims to prioritize self-driving Cybercab production. Cybertruck sales declined to 20,237 in 2025 from 38,965 in 2024, missing Musk's 250,000 annual target. Tesla's stock rose 4.7% on Friday following the announcement.

The US approved sales of Nvidia's H200 AI chips to Chinese firms, including some with ties to blacklisted entities, raising concerns about national security. Approved companies include Baidu, BYD, Tesla Shanghai, Alibaba, Tencent, and ByteDance. Nvidia defended its sales, stating China's military has little incentive to rely on US technology. The Commerce Department defended its screening process, citing penalties and enforcement efforts.

Tesla's Giga Shanghai factory now sources 98% of parts locally, up from 95%, and works with over 400 local suppliers. The factory produced 810,889 vehicles in the first 10 months of 2023, a 21.42% increase year-over-year. Tesla is expanding production at its other factories, including Giga Texas and Giga Berlin.

Tesla CEO Elon Musk announced plans to wind down Cybertruck production at Gigafactory Texas by mid-2027 to allocate space for increased Cybercab production. Musk clarified that existing Cybertrucks will remain in service, but no details were provided on relocation, volume, or pricing. The move is part of a strategic shift in production priorities.

Full-size electric trucks in the US have underperformed, with sales down 53% year-over-year. Automakers like GM, Ford, and Stellantis have faced billions in write-downs. Tesla has discontinued the Cybertruck. Industry experts cite high costs and compromises in towing and range as key challenges. Automakers are now focusing on smaller, cheaper electric trucks, such as Ford's Fathom and Slate Auto's Blank Slate.

Tesla will stop producing the Cybertruck by mid-2025 to focus on the Cybercab, an autonomous ride-share vehicle. The Cybertruck faced production issues, recalls, and lawsuits. Tesla's stock rose 5% after the announcement. The Cybercab, unveiled in July, competes with Waymo's autonomous vehicles.