Tesla Inc said the number of labour 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 Tesla Model S P100D. Tesla.

The electric car maker told Reuters on 14 March that the production of 1,00,000 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 14 March.