Cybertruck makes way for Cybercab! Tesla, Inc. (TSLA.US) shifts gears at its Texas factory, with robotaxi deliveries set for year-end

Tesla, Inc. (TSLA.US) CEO Elon Musk said the electric vehicle maker will phase out Cybertruck production at its Texas Gigafactory around the middle of next year to free up space for expanding Cybercab output. Cybertruck was once touted by Musk as a futuristic rival to pickup models from traditional automakers such as Ford (F.US), but it has struggled to sustain market momentum since launching in 2023. The model has also been hit by multiple recalls and quality-control issues, and Tesla, Inc. has adjusted its price several times. Tesla, Inc. now aims to begin selling Cybercab to the public by the end of the year, even as U.S. regulators are conducting a safety investigation into the driverless vehicle, which lacks traditional manual controls. "We're trying to get Cybercab delivered to customers by the end of this year, that is, by the end of 2026," Lars Moravy, Tesla, Inc.'s vice president of vehicle engineering, told analysts after the company reported third-quarter results. "We'll start with small volumes this year, building up autonomous-driving deployment experience through actual vehicle deliveries, customer use and fleet operations management, and then continue to scale up." Notably, shares of SpaceX (SPCX.US) and Tesla, Inc. plunged 9% and 11%, respectively, on Thursday, with a combined market value loss of more than US$420 billion since Tuesday's close, as investors weighed the risk of possible congressional investigations following the U.S. midterm elections and tighter scrutiny of Musk's companies by regulators. Musk's wealth reportedly topped US$1 trillion after SpaceX's initial public offering in June, but has now fallen below US$800 billion, shrinking by about US$90 billion over the past week. Tesla, Inc. and SpaceX are expanding their artificial intelligence (AI) infrastructure in Texas, including plans to build Terafaba large semiconductor and data center complexin Grimes County, while SpaceX also plans to build a supercomputing center at its Starbase launch site. "Policy direction was already hard to predict, but in the current environment, SpaceX may encounter more new headwinds," analysts at Deutsche Bank Aktiengesellschaft wrote in a report released on Wednesday.