Tesla shares jumped 5.5% on Monday, 9 November, closing at $378.05 as investors welcomed confirmation that the electric car maker will wind down Cybertruck production to focus on its self-driving Cybercab robotaxi.

The stock gained $19.83 on the day, after closing at $358.22 on Friday, and traded as high as $382.20 during the session. Around 36.1 million shares changed hands, about 28% below the average session volume.

Musk confirms Cybertruck end date

Chief executive Elon Musk confirmed on Saturday that Cybertruck production at Gigafactory Texas will end around the middle of 2027, freeing factory space for Cybercab output. The confirmation gave investors a clear end date for a vehicle whose order backlog far exceeds what Tesla can build before production stops, meaning the company will have to return many customer deposits.

The move is part of a wider shift in Tesla's strategy towards autonomous vehicles. The Cybercab, a purpose-built robotaxi with no steering wheel or pedals, is the centrepiece of that plan, and Tesla has already launched its Robotaxi service in San Antonio.

Broad market rally lifts the stock

Tesla's gain came on a day when Wall Street rallied broadly. The S&P 500 rose 2.35% to 7,549.94, the Nasdaq Composite climbed 2.74% to 25,253.14 and the Dow Jones Industrial Average added 2.15% to 52,389.75, as falling oil prices eased inflation worries and technology shares recovered from last week's sharp sell-off.

Tesla was among the strongest performers in the technology sector during the session, recovering part of the ground lost in the post-election rout that had hit growth and artificial intelligence shares hard.

The Cybercab plan is already moving from announcement to operation. Tesla has launched its Robotaxi service in San Antonio, and the company says the purpose-built vehicle will be produced at scale once Cybertruck assembly ends. Investors treated Musk's confirmation as a sign that Tesla is prepared to give up a low-volume product to protect capacity for a business it sees as far larger.

Technically, the shares closed above their 50-day moving average of $372.14 but below the 200-day average of $384.35, leaving the stock still in a mixed position after a volatile few weeks. The gain followed a 6% slide over the preceding week, and the shares have now recorded several moves of more than 5% in either direction over the past year.

Mixed picture in China

The rally came despite mixed news from China, Tesla's second-largest market. Reports indicated that while Tesla's overall sales in China rose by 10%, domestic deliveries in the country fell to a four-year low, underlining the pressure the company faces from local rivals.

Tesla last reported quarterly earnings on 21 October. The shares remain down on the year so far, even after Monday's jump, and investors will watch whether the recovery can hold into Tuesday's US consumer price report, which is expected to set the tone for markets ahead of the Federal Reserve's December meeting.