Tesla converts two million stalled Cybertruck deposits into Model 3 and Model Y incentives in Australia and New Zealand

Tesla has cancelled all Cybertruck reservations for Australia and New Zealand, returning funds to nearly two million customers after a wait of almost seven years. Emails went out to reservation holders on October 23, 2026, confirming that their orders are void and that full refunds will be processed within 30 days.

The company stated in the notification that it is unable to fulfill the reservations due to the discontinuation of production plans for the region. To incentivize customers to switch models, Tesla is offering a free one-year subscription to its Full Self-Driving (Supervised) software to those who order a new Model 3 or Model Y. This move appears designed to convert dead reservations into sales of vehicles Tesla already produces in right-hand drive configurations.

The central technical barrier remains the vehicle's design. The Cybertruck is manufactured exclusively in left-hand drive, while Australia, New Zealand, the UK, and Japan require right-hand drive vehicles. Tesla never produced a right-hand-drive version despite earlier statements from CEO Elon Musk. In 2024, Musk told shareholders that the company might certify the truck for other markets the following year, but no such certification followed.

Australian customers began reserving the truck in November 2019 with a deposit of A$150. By 2023, tracking data estimated total global reservations at roughly 2 million, with Australia ranking as the third-largest market behind the United States and Canada. Tesla quietly removed the Australian reservation page in May 2022, replacing it with an update request button, but did not issue refunds at that time.

Domestic sales figures suggest a niche market for the electric pickup. Tesla reported delivering 8,295 units in its "Other Models" category for the third quarter of 2026, a group now consisting almost entirely of Cybertrucks. This equates to an annualized rate of approximately 30,000 vehicles, far below the production line's capacity of 250,000 per year.

The company's international rollout has been limited to left-hand-drive countries. Deliveries started in South Korea and the UAE in early 2026, with sales configurators added for Saudi Arabia, Qatar, Jordan, and Israel. The truck remains absent from the European Union due to pedestrian safety concerns.

US sales have declined sharply from about 39,000 units in 2024. The decision to refund deposits in the Southern Hemisphere markets aligns with a strategy focused on existing left-hand-drive inventory rather than developing new drivetrain configurations for high-population right-hand-drive regions.