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Credit Suisse analyst Dan Galves sees macro worries, negative sentiment on auto stocks, and declining oil prices as understandable reasons why Tesla shares have sold off recently. However, he also thinks the concerns on Model X production, which he notes have been the subject of several recent bearish comments from other analysts, as overdone and presenting a buying opportunity ahead of the company’s earnings report this Wednesday.

The ramp-up of the Model X has been slower than expected, and behind the company’s initial plans, Galves acknowledged, but he adds this is not due to fundamental issues and he still expects 500 Model X units to be produced in Q4. Galves keeps an Outperform rating and $325 price target on Tesla shares.

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