March 14, 2018 / 9:56 PM / in 5 days

Tesla says Model S, Model X production efficiency much improved

(Reuters) - Tesla Inc said the number of labor hours needed to produce its Model S and Model X cars have decreased considerably, following the latest report of quality problems that could prevent the carmaker from hitting its production targets.

The body of a Tesla Model S is transported by an automated crane at the Tesla factory in Fremont, California October 1, 2011. REUTERS/Stephen Lam

The electric car maker told Reuters on Wednesday production of 100,000 Model S and Model X vehicles is now possible in a two-shift cycle with minimal overtime, compared with three shifts and considerable overtime earlier.

Tesla was responding to a CNBC report that said the company was churning out a high ratio of flawed parts leading to costly rework and production delays, citing several current and former employees.

The company’s shares closed down 4.4 percent at $326.63 on Wednesday.

Reporting by Laharee Chatterjee in Bengaluru; Editing by Sriraj Kalluvila

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