Cybertruck Yields to Cybercab

The note says CEO Elon Musk indicated Tesla plans to wind down Cybertruck production at Giga Texas around mid-2027, reallocating that capacity to raise Cybercab output, without specifying future Cybertruck plans. In Morgan Stanley's view, the announcement underscores Tesla's commitment to Robotaxi and is a bullish signal following recent progress in Austin, where 3Q results highlighted accelerating autonomous miles and a tenfold increase in the Cybercab fleet. Reallocating Cybertruck capacity puts additional manufacturing resources behind that momentum and signals management confidence in the Cybercab and robotaxi opportunity. Although Cybertruck is only about 1% of annual volume and output remains well below initial capacity targets, the shift highlights Tesla's growing focus on robotaxi and autonomy. The $410 price target is built from five components: $45 per share for core auto, $147 for network services, $123 for mobility, $40 for energy and $55 for humanoids.