03:04 PM EDT, 04/09/2024 (MT Newswires) -- Tesla (TSLA) vehicle sales might continue its decrease sequentially in Q2, Baird Equity Research said in a note Tuesday.

The firm expects Tesla to deliver 444,510 vehicles in Q2, compared with 466,000 vehicles a year earlier. Overall, Tesla faces a tough year-over-year comparison in the current period, the note said. Tesla delivered 386,810 vehicles in the March quarter.

Baird expects a "higher interest rate environment" to remain a headwind for Tesla sales, at least through H1. "We think Q1 results will be messy due to several one-time items and continue to believe Q2 estimates are likely still high," the firm said.

The company is expected to report Q1 results April 23.

The firm assigned an outperform rating to Tesla's stock and a price target of $280.

Tesla's shares were up 1.7% in recent Tuesday trading.

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