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)