Tesla says Model S production efficiency much improved

Published: March 15, 2018
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The body of a Tesla Model S is transported by an automated crane at the Tesla factory in Fremont, California October 1, 2011. 
PHOTO: REUTERS

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

Tesla 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.

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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.

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

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