Gary Zhou 
- 📈 Wedbush analysts reiterate an “Outperform” rating and $350 price target for TSLA stock.
- 🚗 Tesla is estimated to be on track to deliver over 480,000 cars in Q4, contributing to its goal of 1.8 million deliveries for the year.
- 💰 Tesla’s stabilized prices and strategic price increases in key markets, such as China, are noted by analysts.
- 🌍 The electric vehicle maker faced challenges in 2023 but countered with price cuts and an updated Model 3 in China.
- 📈 Wedbush expects Tesla to achieve 25-30% YoY growth in 2024, with Model Y sales in Europe and China driving overall growth.
- 📊 Analysts anticipate a recovery in Tesla’s automotive gross margins in 2024, moving above the 20% threshold.
Tesla is concluding the fourth quarter of 2023 with a positive outlook, securing an “Outperform” rating from Wedbush analysts in anticipation of the imminent release of its Q4 and full-year 2023 delivery report.
Tracking Towards Ambitious Goals
In the final week of 2023, Wedbush analysts express confidence in Tesla’s progress towards its ambitious goal of delivering 1.8 million cars for the year. Projections indicate that Tesla is tracking slightly ahead of 480,000 deliveries for the fourth quarter.
Stability in Prices and Strategic Moves
Analysts highlight the stabilization of Tesla’s prices in recent months, with strategic price increases in critical markets, such as China. This trend is reassuring, considering the challenges faced by Tesla in 2023.
Overcoming Challenges Through Strategic Measures
Despite initial challenges, Tesla responded adeptly in 2023. Price cuts, particularly for popular models like the Model 3 sedan and Model Y crossover, enhanced affordability for mainstream consumers. The rollout of an updated Model 3 in China is expected to positively impact achieving the 1.8 million vehicle delivery target for 2023.
Projections for 2024 and Beyond
Wedbush anticipates a robust 25-30% year-over-year growth for Tesla in 2024. This forecast translates to annual deliveries ranging between 2.2 to 2.3 million vehicles. Analysts emphasize the pivotal role of Model Y sales in Europe and China, especially with expectations for the release of an updated version in the coming year.
Positive Outlook for Margins
In an optimistic forecast, Wedbush analysts expect a recovery in Tesla’s automotive gross margins in 2024. They project a movement above the key 20% threshold, indicating a positive trajectory for the company’s financial performance.
