Tesla employees are reporting a high percentage of reworked automotive parts as a result of fundraising manufacturing in its plants, contributing to Model 3 production delays.

According to a CNBC report, anonymous former and current employees have witnessed reworking of parts coming off the line in its Fremont, Calif. plant. One engineer provided an estimate of up to 40 percent of components needing rework, causing the firm to miss its production targets. In more severe cases, Tesla is alleged to be returning damaged components to a separate “remanufacturing” plant for repairs, rather than fixing them on-site.

A Tesla spokesperson denied the allegations with a lengthy statement, with two focused paragraphs related to the remanufacturing claims.

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“Moreover, CNBC’s focus on remanufacturing has nothing to do with the quality of our cars. Remanufacturing is a process that literally every automaker on earth performs. CNBC is extracting a few lines from two job descriptions posted online and making gross assumptions about the roles that are inaccurate. “ read the statement.

“In reality, like other automakers, Tesla remanufactures parts because doing so uses fewer materials and less energy than building a new part from scratch. It is undeniably a good thing that is ultimately better for the environment and if well done is equally good for the customer.”

Tesla CEO Elon Musk has previously stated a manufacturing goal of 20,000 Model 3 vehicles a month by the end of 2017, which was later reduced to 5,000 vehicles a month by June 2018.

[Source: CNBC]