IRLA

Tesla Inc. (NASDAQ:TSLA) shares are rising Monday. CEO Elon Musk defended the planned end of Cybertruck production and Tesla said robotaxi rides will start this week in San Antonio.

• Tesla stock is charging ahead with explosive momentum. What’s driving TSLA stock higher?

Tesla Stock Rises as Musk Defends Cybertruck Decision

Tesla revealed Friday that it will end Cybertruck production around the middle of 2027, clearing space at its Texas factory for the Cybercab, a two-seat robotaxi, according to Reuters. Musk responded Monday in a post on X, arguing that weak demand is not behind the decision. “The Cybertruck order rate far exceeds our production rate,” Musk wrote.

Over the next eight months or so, Tesla will build all the trucks it can before shutting the line, Musk said, and many reservation holders will get their deposits back.

Musk also pushed back on reports that the Cybertruck loses money, saying legacy media misreported the story. Building the truck is complicated, Musk said, and the cost of occupying that capacity is much larger than the benefit of making more Cybercabs there.

Tesla Expands Robotaxi Service to San Antonio

In a separate announcement Monday morning, Tesla’s Robotaxi account on X said San Antonio gets robotaxi rides starting this week and that its Austin coverage area is growing. San Antonio lifts the network to roughly eight cities, joining Houston, Dallas, Fort Worth, Austin, Miami, Orlando and Tampa, while San Francisco also hosts Tesla test vehicles, according to Barron’s.

Barron’s called the rollout behind the pace investors wanted. Robotaxi service debuted in mid-2025, when Musk had aimed to reach close to half of Americans by year-end. Coverage now sits nearer 10%, and about two of every three covered residents are in Texas.

Robotaxis are not yet adding much to Tesla’s revenue or profit. Musk hopes they will appear in reported results by 2027, and the Cybertruck wind-down fits that plan by handing more factory capacity to the Cybercab.

TSLA Shares Are Popping

TSLA Price Action: Tesla shares were up 5.44% at $377.70 at the time of publication on Monday, according to Benzinga Pro.

Image: Shutterstock