Tesla says Model S, Model X production efficiency much improved

(Reuters) - Tesla Inc (TSLA.O) 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 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.