The firm is encouraged by public-policy commitments from governments in Europe and China to support electric-vehicle sales.
Analyst Philippe Houchois also says the Palo Alto, Calif., company's balance sheet should remain in good shape.
Houchois expects Tesla sales to rise 27% in 2020, ahead of Wall Street's consensus estimates of 20% growth.
Meanwhile, Baird analyst Ben Kallo says Tesla could fare better than its luxury peers as the economy recovers from the coronavirus pandemic.
The analyst cited "new products and geographies driving growth, a potentially widening electric-vehicle competitive advantage, and over-the-air updates keeping vehicles fresh," Kallo wrote.
"Similarly, U.S. auto [seasonally adjusted annual rates] took five to six years to recover to prerecession levels after declining about 35% between 2007 and 2009," the analyst wrote.
Baird rates the stock neutral with a $525 price target.
Tesla recently reported its strongest first-quarter performance ever, booking production and deliveries of 102,672 and 88,400 vehicles, respectively.
Production and deliveries jumped 57% and 40% year over year, respectively.
Production of the company's latest vehicle, the Model Y crossover, began in January with Tesla expecting deliveries by March.
Despite the coronavirus, Tesla's Shanghai factory was able to hit record production levels.
In 2019, Tesla delivered 367,500 vehicles, a 50% increase from the year earlier.
Tesla shares at last check advanced 6.4% to $510.51.