Depending on which Android-focused site you believe, either a third Pixel Tablet was apparently in the works at Google and canceled, as Android Headlines reported, or the second one, as Android Authority has it. Either way, there was reportedly a team at Google working on the next flagship Pixel-branded tablet, and now, seemingly due to profitability concerns, that work is over. At least until, maybe, a third Pixel Tablet in the future.
The Pixel Tablet, released last fall, was generally regarded as Google's second re-entry into the tablet market that the iPad all but owns, at least at the consumer level. As such, it sought to distinguish itself from Apple's slab by launching with a home-friendly dock and speaker cradle, taking on the appearance of a big smart home display when docked to it.
While there are no public sales figures, the device has not kick-started a resurgence of interest in Android tablets beyond the baseline sales of Amazon's Kindle Fire devices (based on a Google-less fork of Android). Google will likely continue to support and promote Android tablets for other manufacturers and now has its own Pixel Fold devices occupying that middle space between phone and tablet forms.