Tesla (TSLA - Get Report) shares were rising Monday following a bullish call from Baird analyst Ben Kallo who believes that the selloff the electric carmaker experienced before its rally last week was overblown. 

Kallo also said he expects positive news from Tesla at its annual meeting on Tuesday. The firm maintained its $340 price target on the stock, which a 66% upside from the stock's closing price on Friday. 

Shares rose 4.1% to $212.88 in trading Monday.

"Weak demand remains at the forefront as a bear argument, and while it appears Model S+X demand has softened, we continue to believe Model 3 demand is underestimated," Kallo wrote. "Positive updates in recent weeks, including leaked emails and reports of strong deliveries, appear to have improved sentiment on demand, which we view positively."

Tesla shares have risen 16% over the past five sessions although the stock has dropped 26% over the previous four weeks. The stock hit a year to date low of $178.97 on June 3.

Last week, Electrek reported that Tesla already has delivered 33,000 cars in North America this quarter with the company looking to top its record of 90,700 quarterly deliveries in current period. 

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