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Tesla says Shanghai plant will boost efficiency after huge loss

Carmaker pins hopes on China production, expected to begin at year-end

Tesla expects its Chinese production line will be "at least 50% cheaper per unit of capacity."   © Reuters

PALO ALTO, U.S. -- Tesla reported a wider-than-expected $702 million quarterly loss on Wednesday, one of its worst results to date, as the electric car company struggled with deliveries of its mainstay Model 3 due to logistical bottlenecks.

In a conference call, senior management said improving cost efficiency should allow a return to profit in the third quarter of 2019. A new plant in Shanghai, expected to begin mass production at the end of this year, promises to provide a further boost.

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