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Electric cars in China

Tesla fights Chinese electric-car startups with SUV under $40,000

Mass production of Model Y at Shanghai plant seeks to overcome cost hurdle

PALO ALTO, U.S./OSAKA -- Electric-car maker Tesla will mass-produce a compact sport utility vehicle in China, seeing it as a weapon for cracking a market that has spawned a host of startups described as "Tesla killers."

The Model Y, the fourth entry in Tesla's lineup, will debut in 2020. A version due out in 2021 will start at $39,000 -- half the price of the Model X luxury SUV.

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