Tesla blames battery supply for flat sales, but its prices keep falling

According to Electrek, Tesla's Q3 2026 shareholder letter claims battery supply limited vehicle sales and that the company ended the quarter with its largest passenger vehicle backlog in four years. Yet deliveries fell 2% year-over-year to 486,532 units, with Model 3 and Model Y down 1% and other models dropping 48%. Tesla produced fewer vehicles than it delivered for a second straight quarter, cutting global inventory to 11 days of supply from 27 days in Q1. Model 3 and Model Y factories ran at about 81% of installed capacity.

The letter also cited lower average selling prices for flat revenue, which the article says contradicts a supply-constrained business that would raise prices. Tesla reported record energy storage orders, started Megafactory Texas production, and is raising 4680 cell output for Cybercab, Semi, and Model Y. The outlook notes deliveries depend on allocation choices between customer sales and the company's own fleet, indicating Tesla is directing cells to higher-value projects rather than facing a pure supply shortage.

Source

Tesla blames battery supply for flat sales, but its prices keep falling — Electrek