Tesla Could Hike Despite Media Reports: Expert

The deluge of recent negative media coverage on Tesla (NASDAQ: TSLA) is missing the real story, according to one Wall Street firm.

Baird reiterated its outperform rating for Tesla shares, predicting the electric car maker will make significant progress in raising its Model 3 production volumes.

"Negative headlines have increased substantially in the past month and, in our opinion, increasingly immaterial reports have dominated news cycles," analyst Ben Kallo said in a note to clients Wednesday.

The analyst reaffirmed his $411 price target for Tesla shares, representing 49.5% upside to Tuesday's close.

Kallo predicts Tesla will eventually fix its production issues with the Model 3. He noted that production deliveries rose 83% annually since 2012 for its previous vehicles.

"Tesla has managed to successfully ramp production of the Model S and X, albeit on a slower timeline than initially expected," he said. "While the Model 3 production delay is (rightfully) a focus for investors, we believe a six-month production delay is minor over the long run."

Meanwhile, the company has been busy, registering its Shanghai arm, Tesla (Shanghai) Co. Ltd two weeks ago, with a registered capital of 100 million Yuan ($15.8 million U.S.). The Company will focus on electric cars, spare parts, and batteries, as well as the development of photovoltaic products.

Tesla's shares are down 11.7% year to date through Tuesday compared with the S&P 500's 1.9% return. The company's stock was up $3.10, or 1.1%, in the early part of Wednesday's session to $278.11