Tesla Motors Inc NASDAQ:TSLA stock has received multiple upgrades since the company reported its Q2 results and issued upbeat guidance for the next year. However, Credit Suisse was one major firm not covering one of the hottest stocks on the Wall Street. Finally, Credit Suisse analyst Daniel Galves initiated coverage of the stock with an Outperform rating and $324.93 price target. The price objective reflects a 25% upside potential.

Tesla Motors TSLA

Tesla aims to reduce battery costs to $150 per kWh by 2017

Galves said in a research note dated August 13 that electric vehicles are obviously better than the internal combustion (ICE) vehicles. It won’t be a “fair fight” if Tesla can get cost-parity with ICE and offer customers $1,400-$2,500 in annual cost savings. The San Francisco-based company is on track to cost parity, believes Galves.

Credit Suisse noted that the Gigafactory is a “major step” in bringing down costs. Currently, the battery packs cost $250 per kWh, which Tesla aims to bring down to $150 per kWh by 2017. Credit Suisse says battery costs for the Model 3, expected to be launched in 2017, could be as low as $7,500. Tesla is ramping up production of its car to meet the rising demand. The company aims to achieve a production run rate of 100,000 vehicles in 2015.

Deutsche Bank upgrades Tesla to ‘Buy’

On August 11, Deutsche Bank analyst Rod Lache upgraded the electric vehicle maker from Hold to Buy and raised the price target from $220 to $310 per share. Lache said the recent comments made by Tesla management were the key reasons for their upgrade. What’s more, Deutsche Bank has raised its volume estimate for 2015 from 51,000 to 60,000. The research firm now expects Tesla Motors Inc NASDAQ:TSLA to sell 100,000 vehicles in 2016, up from the previous estimate of 60,000 units. Deutsche Bank noted the revised estimate could still be “conservative.”

Pacific Crest also coverage of Tesla Motors Inc NASDAQ:TSLA on August 5 with an Outperform rating and $316 price objective.

Tesla Motors Inc NASDAQ:TSLA shares inched up 0.61% to $261.88 at 10:47 AM EDT on Thursday.