Tesla’s shift throws India factory plans in limbo

Tesla said that it will use its existing factories to build new and more affordable vehicles as early as late this year, leaving investments in new factories in Mexico and India unlikely in the near term.
The world’s top EV maker said it plans to raise production by 50% from 2023 to its current capacity of close to 3 million vehicles before investing in new manufacturing lines.
“This update may result in achieving less cost reduction than previously expected but enables us to prudently grow vehicle volumes in a more capex efficient manner during uncertain times,” the company said. Investors cheered the decision of not taking the risk of building new models in new factories, with Tesla shares jumping 12% in after-hours trading despite the company’s quarterly results missing targets.
“I think it’s a positive that he’s not just barrelling ahead with an expansion plan, ignoring the challenges in the market and the fact that he’s doing a cheaper vehicle from the existing product line,” said Elliot Johnson, chief investment officer at Evolve ETFs, which manages nearly $6 billion in assets, including investments in Tesla and other EV makers.