Wedbush Reiterates Outperform Ahead of Tesla (TSLA) Q4 Delivery Report
Wedbush reiterated an Outperform rating and a 12-month price target of $350.00 for Tesla (NASDAQ ahead of the company's fourth-quarter delivery report.
In the last week of December, Wedbush analysts believe the electric car maker is slightly ahead of the 480,000 deliveries mark.
Global Tesla prices have stabilized recently, with increases seen in several regions, especially China. This positive trend is reassuring for Tesla enthusiasts after a difficult 2023.
Initially, market concerns suggested declining demand and increased competition for Tesla in 2023. However, Musk made the bold strategic decision to reduce prices globally, particularly in China, with the aim of boosting sales. As a result, it is anticipated that Tesla's annual sales could reach an impressive 1.8 million units by 2023.
Wedbush expects 25% to 30% year-over-year unit growth in 2024, potentially reaching between 2.2 and 2.3 million units. Model Y sales in China and Europe could drive additional growth.
Despite a global moderation in demand for electric vehicles, Tesla is leading the EV transformation and estimates that by 2030, around 20% of cars will be electric vehicles. While some traditional automakers like GM and Ford seem cautious, Tesla is doubling down, introducing the Cybertruck and planning another sub-$30,000 vehicle in the next 6 to 9 months.
Following Tesla's price cuts in 2023, investors debated what the road ahead would look like as the company struggles to rebuild its margins.
“To this point, we believe margins have stabilized and should rise from these levels, with GM Auto moving back above the key 20% threshold over the course of 2024.” Wedbush analysts wrote in a note.
TSLA shares rose 0.70% in premarket trading on Wednesday.
