Tesla also reaffirmed that the lower-cost vehicle, dubbed “Model 2,” will use components from Tesla’s next-generation platform and the current platform, and will be produced “on the same production lines as our current vehicle lineup.”

“This approach will result in less cost savings than previously expected, but will allow us to cautiously grow our vehicle volumes in a more capex-efficient manner during uncertain times,” the EV maker said.

“This should help us fully utilize our current projected maximum capacity of almost 3 million vehicles, enabling growth of more than 50% over 2023 production before investing in new production lines,” the report said.