15:38 GMT04 June 2020
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    US electric car marker Tesla lost a record $717.5 million in the second quarter of this year, an updated Q2 report said Wednesday.

    The company said it expected to produce 50,000 to 55,000 Model 3 cars in the third quarter. "Deliveries should exceed that," Model 3 is a fully electric car with a dual motor and five seats to adults. It can accelerate from 0 to 60 miles per hour in 3.5 seconds.

    Accroding to the USA Today, for the first six months of the year, Tesla has lost $1.5 billion, which has raised questions about its long-term viability. Much of the spending reportedly continues to involve ramping up production of the Model 3, Tesla's first mass-market electric vehicle with a starting price of about $35,000.

    However, Tesla said in a statement that its used car sales are "growing rapidly," which should likely reduce losses in its business operations.

    In June, Tesla CEO Elon Musk announced cutting company's workforce by 9 percent by eliminating management positions in an attempt to turn a profit for the first time in the company’s 15 year history.

    In recent months, Tesla has reportedly missed production targets for its latest Model 3 vehicle, which it needs to build in sufficient quantities to produce a profit.

    Tesla is one of the companies of businessman Elon Musk, along with the SpaceX aerospace manufacturer and the PayPal payment system. The automaker, specializing in the creation of electric cars and solar panels, was established in 2003.

    In early July, Elon Musk signed a memorandum of understanding with Shanghai Mayor Ying Yong to build a new Tesla factory in the Chinese city with an anticipated capacity for 500,000 cars per year, The Wall Street Journal reported.

    Tesla is reportedly the first foreign car manufacturer to enter the Chinese market without the help of a local joint venture partner.


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    losses, production, vehicles, Model 3, Tesla, Elon Musk, United States
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