Tesla (NASDAQ:TSLA) received a vote of confidence from Wedbush analysts ahead of the company’s release of its fourth quarter and full-year 2023 delivery report. In a note, Wedbush analysts reiterated an “Outperform” rating and $350 price target for TSLA stock.
It is the final week of the fourth quarter and 2023 as a whole, and Wedbush analysts estimate that Tesla is well on its way toward hitting its ambitious goal of delivering 1.8 million cars this year. The analysts estimate that Tesla is tracking a bit ahead of 480,000 deliveries for the fourth quarter.
The analysts took note of Tesla’s prices, which have generally stabilized in recent months. Tesla has also implemented a series of strategic price increases in critical markets such as China. This trend should be quite reassuring for Tesla bulls following the challenges of 2023, as noted in an Investing.com report.
Tesla did seem like it was about to meet some serious challenges this year. However, the electric vehicle maker came out swinging with a series of price cuts that made best-selling electric vehicles like the Model 3 sedan and Model Y crossover more affordable to mainstream consumers. These strategies, as well as the rollout of an updated Model 3 in China, could very well have helped Tesla reach 1.8 million vehicle deliveries in 2023.
Wedbush is expecting Tesla to post 25-30% year-over-year growth in 2024. This would translate to annual deliveries of about 2.2 to 2.3 million vehicles. The strength of Model Y sales in Europe and China could drive the company’s overall growth, especially amidst expectations that the electric vehicle maker would be releasing an updated version of the all-electric crossover sometime in the coming year.
Interestingly enough, the analysts also estimated that Tesla’s automotive gross margins could see some recovery in the coming year. “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,” the analysts noted.
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