Batteries · Oct 21, 2026, 21:38
Tesla Starts 50 GWh Megafactory Texas, Says Cell Supply Still Caps Cars
Tesla's Q3 letter says battery availability limited vehicle volumes while Megafactory Texas began production with 50 GWh of planned capacity and storage deployments reached 13.7 GWh, as data center demand pulls on Megapack.
Production-line photo from Tesla's Q3 2026 update. It sits on the Megafactory Texas start-of-production page; it is not confirmed as a specific line.
Image: Tesla
Source · Image from Tesla's Q3 2026 investor update, used for news reporting.
Tesla said in its Q3 2026 shareholder letter that battery availability continued to be the limiting factor in raising vehicle volumes, even as it started production at Megafactory Texas, a Megapack plant with 50 GWh of planned capacity. The letter was published on October 21, and Electrek reported on its claim that supply rather than demand is holding back car sales.
Texas now holds Tesla's largest Megapack capacity at 50 GWh, while its own LFP cell line in Nevada is only 7 GWh.
Illustration (AI-generated)
On storage, Tesla reported its highest-ever order rate and backlog. It deployed 13.7 GWh of storage in the quarter, up 10% from 12.5 GWh a year earlier, according to the letter's financial summary. Energy generation and storage revenue was $2,881 million, down 16% from $3,415 million in Q3 2025.