Tesla Inc. first-quarter deliveries may come in below expectations, but the bearish news likely is already accounted for in the stock price and the announcement could work as a “de-risking event.”
That’s from analysts at Baird, known bulls on Tesla TSLA, +1.04% which has been hit lately with mostly negative Wall Street takes about its first-quarter deliveries numbers, expected next week.
Read more: Tesla stock price, deliveries dialed down yet again
“We are buyers into the release as we believe weak deliveries are priced into the stock and think the report could be a de-risking event,” the analysts, led by Ben Kallo, said in a note Thursday. They expect Model 3 deliveries to hit 50,000, slightly below market expectations.
“Management could provide an update on demand/backlog, which we believe would be positive for the stock,” they said. “We think overly negative sentiment on demand could improve following the announcement, which should drive shares higher.”
See also: Tesla’s price target lowered at Cowen on expectation of softer deliveries
Analysts polled by FactSet expect Tesla to deliver 77,000 vehicles in the first quarter, including 55,000 Model 3 sedans. Concerns have swirled that demand for Tesla vehicles are lagging and margins dwindling.
Shares have gained around 7% in the past 12 months, which contrasts with gains of about 8% for the S&P 500 index SPX, +0.21%
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