Tesla announced on Tuesday that it will utilise its existing factories to produce new, more affordable vehicles by late this year, deferring any near-term investments in new facilities in Mexico and India.

What Happened: The leading electric vehicle (EV) manufacturer plans to increase its production by 50% from 2023, aiming to reach a capacity of nearly 3 million vehicles without adding new manufacturing lines.

The company expressed that this approach might lead to less cost reduction than anticipated but would allow for cautious growth in vehicle volumes in a cost-effective manner during uncertain times. After the announcement,

See also: How This Tech Influencer Recovered His Phones After They Were Stolen During An Outing With His Wife

Investors responded positively to Tesla’s decision to avoid the risks associated with establishing new models in new factories.

Earlier in the year, speculation about Tesla's plans for a cheaper model known as “Model 2” had circulated, suggesting possible production in Texas, Mexico, and another country. However, Tesla has shifted focus to producing affordable vehicles using innovative manufacturing technologies within its current facilities.

Tesla also addressed the cancellation of CEO Elon Musk's scheduled meeting with Indian Prime Minister Narendra Modi, attributing it to pressing obligations at Tesla and planning to reschedule for later in the year.

Read next: Zerodha’s Tech Falters Again: Users Voice Frustration