Wedbush reiterates Outperform ahead of Tesla’s 4Q delivery report

Wedbush reiterated an Outperform rating and 12-month price target of $350.00 on Tesla (NASDAQ:) ahead of the company’s 4Q delivery report.

In the final week of December, analysts at Wedbush believe the electric automaker is tracking slightly ahead of the 480k delivery mark.

Global Tesla prices have recently stabilized, with increases observed in various regions, notably China. This positive trend is reassuring for Tesla enthusiasts following a rocky 2023.

Initially, market concerns suggested declining demand and heightened competition for Tesla in 2023. However, Musk made the bold strategic decision to cut prices globally, particularly in China, aimed at boosting sales. As a result, it’s anticipated that Tesla’s annual sales could reach an impressive 1.8 million units for 2023.

Wedbush is expecting 25%-30% YoY unit growth in 2024, potentially hitting 2.2-2.3 million units. Model Y sales in China and Europe could drive additional growth.

Despite a global moderation in EV demand, Tesla leads the EV transformation, estimating that by 2030, around 20% of cars will be EVs. While some traditional automakers like GM and Ford seem cautious, Tesla is doubling down, introducing the Cybertruck and planning another sub-$30k vehicle in the next 6-9 months.

Following Tesla’s price cuts in 2023, investors debated what the path would look like as the company fights to rebuild their margins.

“To this point we believe margins have now stabilized and should move up from these levels with Auto GM heading back above the key 20% threshold during the course of 2024.” Wrote analysts at Wedbush in a note.

Shares of TSLA are up 0.70% in pre-market trading on Wednesday.