Shares of Tesla Inc. gained 0.4% in premarket trade Wednesday, bucking the expected selloff in the broader market, after Baird analyst Ben Kallo recommended investors "lean into the 'fever pitch'" of negative sentiment. Kallo reiterated his outperform rating and stock price target of $411, which is 49% above current levels. "Negative headlines have increased substantially in the past month and, in our opinion, increasingly immaterial reports have dominated news cycles," Kallo wrote in a note to clients. "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." He said while the decision by Consumer Reports to not recommend the Model 3 was negative, the fact that Consumer Reports will revisit its evaluation after a software update is implemented is a positive. "We think [Tesla's] ability to continuously improve its vehicles through software updates is a differentiating factor for the company," Kallo wrote. Tesla's stock has tumbled 21.9% over the past three months through Tuesday, while the S&P 500 has slipped 0.8% and the Dow Jones Industrial Average has lost 1.9%.