NEW YORK (TheStreet) -- Tesla Motors (TSLA) - Get Report stock is increasing 0.36% to $191.02 in afternoon trading on Monday after Credit Suisse analysts said the electric vehicle manufacturer's investments have created cost saving opportunities.
"Over time, the company sees potential for substantial production cost declines as higher-volume equipment and changes in processes built around high-volume (vs low-volume) are optimized," Credit Suisse analysts wrote in a note this morning after visiting Tesla's assembly plant in Fremont, CA.
Higher production volumes could also increase cost efficiency as the Palo Alto, CA-based company expands its lineup with the Model 3, Tesla's most affordable vehicle that will be introduced in March.
"As has been its strategy from day one, Tesla will target a portion of the cost saves to drop to the bottom line and a portion to offset the cost of incremental content/features," analysts noted.
Credit Suisse maintained its "outperform" rating on the company, which is expected to see "significant improvements in cash flow and margin" in the second half of 2016, analysts added.
Separately, Tesla Motors has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing stock performance.
You can view the full analysis from the report here: TSLA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.