Earlier this week, Tesla reduced the price of the Model S by $3,000. When a price change is applied to any of Tesla’s vehicles, it is usually a race between media outlets to report it first. I believe that many news sites look at it as an opportunity to have a post with high views, and being the first to report it could lead to that. Also, with human beings remaining relatively misinformed about EVs and Teslas’ prices in specific, whenever a price drop is applied, it is a huge deal.
But the reason for misinformation spreads to journalists as well. I found myself shocked at the Fox Business article that implied that Tesla was undergoing some sort of “sales slide.” At least, that’s what they put in their headline.
Baffled at what I had read, I felt compelled to post it on Twitter and LinkedIn (the only two forms of social media I have) and set the record straight. While it is true that the percentage of the Model S sales has gone down, it is untrue that Tesla, or the flagship sedan, is seeing record low numbers because of a “sales slide.”
https://twitter.com/KlenderJoey/status/1316017793070850053
First, Tesla just had its most successful quarter in terms of production and deliveries in Q3. 139,300 cars were delivered, and 145,036 cars were produced at Fremont and Giga Shanghai. Nothing about that indicates a sales slide, especially considering the massive growth during the quarter in both deliveries and production.
The Model S and Model X were delivered 15,200 times during the quarter. Yes, this is a relatively small percentage, just a tad more than 10% of the total deliveries that Tesla performed over the course of the quarter. It is a 33% growth from the last quarter, where the company only delivered around 10,000 of the two vehicles.
In my opinion, it isn’t that Tesla’s flagship sedan is “less popular” or even “slumping” in terms of sales. I think that the Model Y and Model 3 are simply better options for most car buyers. I’ll tell you why.
First, we have their price. The Model 3 and Model Y have better price points, and they are Tesla’s first two mass-market vehicles. This means that the prices will fit more budgets, and it will be a more popular vehicle because of that.
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Secondly, the Model 3 and Model Y technology is significantly better than the Model S and Model X. Of course, the Model S has a lot of power, and the Model X has those awesome falcon-wing doors that everyone freaks out about. But in terms of sheer technology, the Model 3 and Model Y are just better options. They are minimalistic, they are newer designs, and they are also operating with better batteries than the Model S and Model X.
The Model 3 is, as far as we know, still utilizing the 2170 cells, while some speculation suggests that Tesla could already be putting the 4680 cells in the Model Y. These cells are not only more affordable, but they’re also more efficient, offer better power, and their energy capacity is greater.
The Model S and the Model X are still using the 18650 battery cells, which are still great batteries. The Model S has an EPA record 402 miles of range, and they both have 100 kWh battery packs in their performance models, which makes them a better option for the speed demons out there. Nevertheless, battery tech has gotten better since the Model S and Model X have been built, and neither of these cars has undergone a refresh, which brings me to my next point.
Buying a Model 3 or a Model Y ensures that a car buyer has the most up-to-date Tesla technology available. In addition to the already more minimalist design that the 3 and the Y offer, these two cars’ look is fresh in people’s minds. The Model 3 literally just underwent a refresh last night, and the Model Y is only seven months old as of right now.
Meanwhile, the Model S and Model X have relatively the same design as they did when they were released. The only things that have really changed are the available colors and the grille, which are minor cosmetic modifications. I love the look of the S and the X, but some people out there need the most updated versions of things. That is why we see so many people waiting for Apple to release a new phone, even though theirs works perfectly fine.
There’s nothing wrong with wanting something new. I get it. Believe me, I will be one of the first people in Pennsylvania to have a PS5, but that’s a $500 purchase. A car is $35,000 at the least if you want a Tesla.
All of this brings me to my point: These large-scale media networks reporting price cuts should just report the price cuts. Nothing more, and nothing less. There is no reason for these media outlets who have no idea what they’re talking about to sit there and suggest that the Model S is having a sales slide when they are still selling a healthy amount of vehicles.
Even Tesla knows that the Model S and Model X are not going to be big factors in the company’s future growth. That’s why the company has confined production to Fremont and hasn’t expanded it to Shanghai or even mentioned it with Giga, Texas. There is no need to. Remember, Tesla’s ultimate mission is to accelerate sustainable energy and transportation, not turn a massive profit with really fast cars. If that were the case, I’m sure the Roadster would already be built and roaming around the streets of California being driven by celebrities and Tesla referral code masters.
There is a real danger here with the way media outlets are angling their headlines. Ultimately, Tesla is doing a great job of expanding its presence in the automotive market. If mainstream media was more responsible with its reporting, could Tesla’s popularity be even more widespread at this point?
I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!
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Elon Musk
Tesla’s secretive “Project Crystal Sun” gets a big green light in Texas
Fort Bend County approved four incentive agreements Thursday for Tesla’s proposed $10.1 billion solar factory.
Fort Bend County commissioners on Thursday approved a package of tax incentives for Tesla’s proposed $10.1 billion solar cell factory near Needville, Texas, giving the company one of the last local approvals it needs before it decides where to build. All four Tesla agreements passed 4 to 0.
The votes covered a property tax abatement inside Reinvestment Zone No. 34, a Chapter 381 economic development agreement, a foreign trade zone non-objection paired with payments in lieu of certain taxes, and a separate payment in lieu of taxes “true up” agreement, according to agenda notes from the Fort Bend Commissioners Court meeting.
The project, known internally as “Project Crystal Sun,” would make solar cells and finished modules on roughly 3,000 acres near FM 762 and FM 1994, south of the Brazos River. As Teslarati reported when the filing first surfaced in August, Tesla’s application under the state’s JETI Act splits the investment into $1.5 billion in real property and $8.6 billion in equipment, with 9,712 permanent jobs projected by 2033 and commercial operations targeted for the first quarter of 2029. The plant would handle the full chain from ingot and wafer production through cell testing.
Inside Tesla’s secretive $10 Billion “Project Crystal Sun” filing
Thursday’s approval does not lock in the site. Tesla has told the Texas Comptroller it is still weighing other locations, and site selection adviser David Dennison told Lamar Consolidated ISD trustees in September that the race had narrowed to Fort Bend and one out of state rival with a “very compelling package,” according to the Houston Chronicle. Tesla hopes to decide before the end of 2026, and the incentives still need sign off from the Comptroller and the Governor’s office.
Local officials have now done nearly everything within their control. Commissioners created the reinvestment zone in an August 24 special meeting, with Interim County Judge Daniel Wong formally withdrawing himself over his engineering firm’s past work with Tesla. Lamar CISD trustees voted 7 to 0 on September 15 to advance a JETI agreement that would tax Tesla’s qualifying property at 50 percent of its value for maintenance and operations from 2029 through 2038.
The plant lines up with a target Elon Musk set on Tesla’s Q4 2025 earnings call in January, when he said the company would “work toward getting 100 GW a year of solar cell production, integrating across the entire supply chain from raw materials all the way to finished solar panels.” In March, Tesla was reported to be negotiating a $2.9 billion purchase of Chinese solar manufacturing equipment bound for Texas. The Houston area already hosts Tesla’s Megafactory in Brookshire, where Megapack 3 production has started. Tesla said on its Q3 call that Megapack supply for 2027 is nearly sold out, and Musk wrote on X Thursday that the company is “increasing production of Megapacks as much as possible,” as demand from data centers climbs.
Tesla revealed plans to develop its own maps internally to fix Navigation issues and give owners more control over their routing.
On the company’s Q3 2026 Earnings Call, a question was asked about FSD Navigation issues, particularly speed limit recognition, parking, and routing. These are issues that surface from version to version and seem to be seriously challenging for Tesla’s AI team to resolve.
Tesla’s Head of AI, Ashok Elluswamy, said in response to the question:
“You’re totally right that we shouldn’t be depending on external people’s maps. So we are building our own maps, but not like the same way as OneMoreMap. We are building an entirely new architecture with essentially AI-based mapping and navigation.”
He continued:
“It’s going to be super awesome. It’s going to be integrated with voice. You can talk to it, ask for different routes. It’s going to learn your personalized preferences, plus the fleet preferences. The collective intelligence of all the cars is going to flow into making the maps and navigation super cool.”
Elluswamy said this issue should be confronted, and the mapping should be available for people by the time the v15 release starts deploying to customers.
“And over the next several months,” he added, “it’s just going to take over all of the navigation functions, parking, destination handling. And it will know you better than you know yourself in some regard for the driving task, and then handle it fully.”
Tesla Summon got insanely good in FSD v14.3.2 — Navigation? Not so much
Navigation is perhaps the most notable complaint with FSD, and although it has gotten better, it is still flawed. Much of the time, FSD will take people on routes that are not preferred by the driver, but Tesla tried to combat this with a routing feature in the Summer 2026 Update.
Tesla currently relies on Google for map data, but it is sort of counterintuitive to believe the company would rely on a third party for this. These improvements will be welcome, as routing and navigation have been such a pain point for so many owners for so long.
Quotes via Motley Fool
Tesla Full Self-Driving (Supervised) showed a record attach rate at delivery for new vehicles in the third quarter of 2026.
75 percent of new vehicle deliveries in North America included a subscription to FSD software, up from 55 percent in the prior quarter, a 20-percentage-point sequential gain in the company’s most mature market.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla shed light on the Q3 Shareholder Deck that 75 percent of new deliveries came with an FSD subscription:
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets. “
The higher attach rate accompanied strong growth in the overall FSD consumer base, as active subscriptions rose to 1.75 million, a 67 percent year-over-year increase. For the first time, more than half of paid customers are on the monthly subscription, which is priced at $99 per month in the U.S.
People are buying FSD with a car attached, not the other way around
— Elon Musk (@elonmusk) October 21, 2026
The transition to subscriptions has accelerated since Tesla discontinued the one-time purchase option in most markets earlier this year. The recurring model improves revenue visibility and margins compared with large upfront payments. With three-quarters of North American deliveries now including FSD, the software is now an evidently large contributor to Tesla’s economics and ancillary revenue.
Geographic expansion remains important for further gains. FSD is now available in nine countries in the EU, and more than 100,000 customers have driven over 160 million kilometers. Tesla is pursuing broader EU-wide approval, with a related vote expected in December. Similar progress in additional markets could support higher attach rates beyond North America.
These results came as Tesla had a strong quarterly delivery performance of 486,532 vehicles in the quarter, which came with its largest passenger-vehicle backlog in four years. Battery supply continued to limit volume, but the company has pointed to FSD as a clear difference-maker that is helping sustain demand. As supervised capabilities improve, the attach rate will likely continue to improve.
At face value, it is a key measure of how Tesla is converting sales into autonomy progress.
Tesla’s secretive “Project Crystal Sun” gets a big green light in Texas
Tesla is building its own maps to fix Navigation issues
