Electric car maker Tesla Inc (NASDAQ:TSLA) is due to report third quarter car deliveries next week, including the recently launched Model 3.
Broker Baird speculated that the company may already be slipping behind market expectations, and has penciled in 300 to 400 model 3 vehicles versus the market's forecast of around 500.
Tesla has held its hand up and admitted that the third quarter would likely prove a challenging one in terms of ramping up production of the new model, and said the fourth quarter would see production start to scale-up.
“We believe Q3 will be the most challenging part of the Model 3 production ramp,” Baird said.
If it does miss its targets and that leads to a share price fall, the analysts would be inclined to buy on weakness.
Shares in Tesla were up 0.5% on Friday afternoon and are up 60% this year.