NEW YORK (TheStreet) -- Oppenheimer Senior Research Analyst Colin Rusch appeared on CNBC's "Closing Bell" on Tuesday afternoon to talk about Tesla Motors (TSLA) - Get Tesla Inc Report CEO Elon Musk's announcement that the electric vehicles manufacturer will launch versions of its Model S sedan and Model X SUV that have a more powerful 100 kilowatt hour battery.
"These are the incremental product improvements that we've been expecting," he said. "I think what they've done here with the battery pack is pretty impressive from an engineering standpoint."
As for how the new products will affect sales, Rusch says the firm sees it as "incremental expansion on the high end."
A lot of Tesla's fans have seen these "very, very fast cars" and now want to see them in their own garages, Rusch said. "I think they will pony up for the new battery, and the folks waiting for the new performance series will likely spend the extra 7% price difference for the extra performance just to have it," he explained.
Although the company has had production issues in the past, investors who view the stock positively are focused on shipments and cash flow, he said.
In the future, the stock will rise or fall based on whether the company reaches production, sales, and cash flow targets, he concluded.
Separately, 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.
TheStreet Ratings team rates Tesla as a Sell with a ratings score of D+. This is driven by some concerns, which the team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers.
You can view the full analysis from the report here: TSLA