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Saturday, October 24, 2026The stories that matter, every day.
Business · Elon Musk

Tesla Halts Cybertruck Plans in Australia and New Zealand, Refunding Seven-Year Deposits

After nearly seven years of waiting, Tesla has voided reservations for its electric pickup in the region, citing right-hand-drive certification costs and slowing global demand.

By Brianna Jackson ·

A$150. That was the deposit Australian and New Zealand customers paid in November 2019 to reserve a spot in the production line for Tesla’s Cybertruck. On Thursday, October 23, 2026, that deposit was officially voided. The automaker sent emails to reservation holders confirming that plans to produce the electric pickup for the region have been discontinued. This ends a nearly seven-year wait for a vehicle that Tesla now says it will not build for these markets.

The timeline of this cancellation stretches back to the initial launch of the reservation system. In late 2019, interest was high, with Australia reportedly ranking as the third-largest market for pre-orders behind the United States and Canada. By 2023, crowdsourced trackers estimated that approximately 2 million people globally had placed reservations. However, the path from deposit to delivery stalled. In May 2022, Tesla quietly closed the Australian reservation page, replacing it with a button to receive updates, but did not issue refunds at the time. Customers were left in limbo, holding onto their payments while the company continued to produce the truck only in the United States.

The core issue preventing the truck's arrival in Australia and New Zealand was technical and financial. The Cybertruck is manufactured exclusively in a left-hand-drive configuration. To enter the Australian and New Zealand markets, the vehicle required a right-hand-drive variant, which necessitated a separate re-engineering effort and specific design certifications. Tesla also faced the challenge of justifying the cost of this new production line given the vehicle's current sales trajectory. While the truck has launched in left-hand-drive markets such as South Korea, the United Arab Emirates, Saudi Arabia, Qatar, Jordan, and Israel, it remains blocked in the European Union due to pedestrian safety concerns.

Financial data released alongside the cancellation highlights the demand shift. Tesla reported its third-quarter 2026 earnings just one day before the emails went out. In that quarter, the company delivered 8,295 units categorized as "Other Models," a segment that now consists almost entirely of Cybertrucks since production of the Model S and Model X ended. Estimates suggest Cybertruck sales averaged between 7,000 and 8,000 units in the quarter, equating to an annual pace of roughly 30,000 vehicles. This is significantly lower than the production line’s capacity of 250,000 units per year, making a specialized right-hand-drive line difficult to justify for two markets with a combined population of approximately 33 million.

Tesla is now attempting to retain these customers by offering an alternative. The email to reservation holders stated, “After careful consideration, plans to produce Cybertruck for Australia and New Zealand have been discontinued.” As a result, the company is refunding all payments made, with processing expected within 30 days. To encourage customers to switch to vehicles it already builds in right-hand-drive configuration, Tesla is offering a free one-year subscription to Full Self-Driving (Supervised) for those who purchase a new Model 3 or Model Y.

The decision follows a period of inconsistent communication. In 2024, Tesla shipped a Cybertruck to Australia for a display tour. During that year, CEO Elon Musk told shareholders, “We might be able to certify it for other markets sometime next year.” That year passed without a right-hand-drive version appearing. The delay left many customers waiting for a truck that had evolved since the 2019 reservation period, with higher prices and range specifications that differed from initial promises.

Market analysts note that the Cybertruck has become a niche product, primarily serving North American demand. Sales in the U.S. have dropped significantly from their 2024 peak, further reducing the incentive for Tesla to invest in complex international adaptations. The cancellation confirms that the vehicle’s global expansion will remain limited to regions that can accommodate left-hand-drive vehicles or are willing to pay a premium for imports.

For the thousands of Australians and New Zealanders who held deposits, the process is now clear. Their orders are cancelled, and their money will be returned. The free FSD subscription serves as a concession for those who decide to switch to the Model 3 or Model Y, which are already available in the region. The move signals a strategic pivot away from pursuing high-cost, low-volume international variants for its flagship pickup.

The episode concludes a long-running saga for the brand in the Pacific region. While the initial hype in 2019 suggested a massive international rollout, the realities of engineering, certification, and demand have forced a retreat. Tesla has chosen to protect its margins by focusing on existing right-hand-drive models rather than expanding the Cybertruck's footprint into markets where the vehicle would require significant redesign.

Source: Electrek

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