Wedbush Foresees Outperform Rating for Tesla Amid Optimistic 4Q Delivery Report

Summary

  • Tesla (NASDAQ:) maintains an Outperform rating and a 12-month target of $350.00 from Wedbush ahead of its 4Q delivery report.
  • The global electric car manufacturer is on track to exceed the 480k mark, according to information as of the last week of December.
  • A wave of increased Tesla prices in various regions, chiefly China, has seen some signs of stabilization which should alleviate concerns for Tesla supporters following a rocky 2023.
  • Anticipations for Tesla’s annual sales are high, with predictions reaching up to 1.8 million units as a result of Musk’s strategic decision to cut global prices in 2023.
  • Tesla’s leadership in the Electric Vehicle (EV) market appears firm as we move through the 2020s, with its plans for introducing a sub-$30k vehicle and the Cybertruck within the next several months.

Optimistic Outlook for Tesla

Wedbush reiterated Tesla’s strong standing with an Outperform rating and a 12-month target of $350.00, just prior to the forthcoming fourth quarter delivery report. For the final week of December, it’s believed that the electric vehicular giant is slightly ahead of the mark of 480,000 deliveries.

Stability in Tesla’s Global Prices

Tesla’s prices around the world seem to be balancing, with notable hikes observed in distinct regions, particularly in China. This reassuring trend provides some respite for Tesla fans, as 2023 was a somewhat tumultuous year for the company.

Tesla’s Strategic Choice

Initially, industry concerns pointed towards decreased demand and increased competition for Tesla in 2023. Musk, however, adopted a bold strategy of lowering prices worldwide, specifically in China, which propelled sales. As such, Wedbush anticipates that Tesla’s yearly sales could see an impressive tally of 1.8 million units for 2023.

Future Objectives

Looking ahead, Wedbush predicts a 25%-30% YoY unit growth in 2024 for Tesla, potentially leading up to 2.2-2.3 million units. Sales of the Model Y in Europe and China are poised to stimulate additional growth for the nest year.

Though Electric Vehicle (EV) demand has seen a slowdown globally, Tesla continues to advance the course of the EV revolution, predicting that by 2030, approximately 20% of all cars will be EVs. Despite regular automakers like GM and Ford appearing wary, Tesla forges ahead by planning on the roll-out of the Cybertruck and another sub-$30k vehicle within the soonest 6-9 months.

The path for Tesla post its 2023 price cuts was a hot topic of debate among investors, particularly concerning the effect on the company’s profit margins. Wedbush analysts note that margins are now stable and are projected to rise back above the significant 20% threshold over 2024.

On Wednesday, preliminary market exchanges saw a 0.70% rise in Tesla (TSLA) shares.

These assertive market moves and financial forecasts could indeed have repercussions on forex trade, particularly in terms of assets related to Tesla and Electric Vehicle production.

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