Tesla’s stock reiterated as Best Pick for 2023 at Baird, but sentiment negative as Q2 earnings loom

Baird analyst Ben Kallo reiterated his buy rating on Tesla Inc.’s stock
TSLA,
-6.06%
on Tuesday and said he likes it as Best Pick for the year. “With that said, we think sentiment headed into the quarter is negative and stock likely trades down into the quarter which should be low point for gross margins,” the analyst wrote in a note to clients. “Although we are cautious into the print, we think it will be a “derisking” event and buyers are likely to step in following results.” For now, Baird is advising investors to wait until closer to second-quarter deliveries which are expected by July 3 to buy more shares. Tesla’s stock has gained 20.1% since May 31, while the S&P 500
SPX,
-0.45%
has gained about 3.8%, he said. Tesla will report second-quarter earnings on July 24. Bright spots should be stationary storage demand and the outlook for margin expansion in storage, he wrote. “Catalysts include progress on 4680 cell production, expanding margins, Cybertruck release, Model 3 refresh, and more information on additional production,” said Kallo.