S&P Global Ratings raised its issuer credit rating on Tesla (NASDAQ: TSLA) to "BB-" from "B +" and raised its issue-level ratings on its unsecured debt to "BB-" from "B +."

The rating has been revised as Tesla continues to improve production efficiency. In 3Q 2020, the company produced 146,036 vehicles, which is 51% more than the same period in 2019. With continuing global expansion to strengthen its leading position.

"Improved execution, increasingly efficient production, and global expansion continue to strengthen the company's competitive position."

The debt rating agency also cited Tesla's third-quarter deliveries and praised the production ramp of the Model Y, the compact SUV that is Tesla's latest vehicle. In Q3 2020, the company was able to deliver 139,300 vehicles, an all-time record.

"This ramp up in production was significantly faster than its initial Model 3 ramp up, which took over nine months to reach the same weekly rate," S&P said. "We expect further improvements in efficiency, cost, and technology as Tesla builds on lessons learned from prior factories."

S&P Global Ratings said it expects Tesla to deliver more than 470,000 in 2020, which would be within the company's goals for the year. Sales could reach more than 800,000 in 2021, S&P said.

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