Tesla to end Cybertruck output in Texas by mid-2027 to free up Cybercab capacity

what happened

Elon Musk said Tesla will stop making Cybertruck at Gigafactory Texas around the middle of next year. The freed-up space will be used to increase Cybercab production. According to Seeking Alpha, SpaceX shares dropped 9% on Thursday and Tesla shares fell 11%. Their combined market value has lost more than $420 billion since Tuesday's close.

Investors weighed possible congressional investigations and tighter regulatory scrutiny of Musk's companies after the US midterm elections. Forbes estimates Musk's wealth, which topped $1 trillion after SpaceX's June IPO, has fallen below $800 billion. Deutsche Bank analysts noted that SpaceX could face some additional headwinds in this environment.

why it matters

For markets, the production change matters less than the rising regulatory risk around Musk's companies. A loss of about $456 billion in combined market value shows how quickly political risks can feed into share prices. Tesla and SpaceX are both tied to shared AI infrastructure projects in Texas, so news about investigations could hit both stocks at once.

market impact

Tesla and SpaceX shares: pressure from investigation and regulatory risks

• ▼Tesla shares pressure down — investors fear congressional investigations and tougher regulation
• ▼SpaceX shares pressure down — regulatory risks and possible headwinds for the business in this climate

tags

instruments