The deluge of recent negative media coverage on Tesla 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. "We think we have hit a peak in negative coverage/sentiment, and believe shares could appreciate significantly with execution, which should coincide with an improvement in sentiment."