On Thursday, Wedbush Securities maintained its positive stance on Tesla stock (NASDAQ:TSLA), reiterating an Outperform rating and a $515.00 price target.
The affirmation comes despite Tesla's announcement of its fourth-quarter delivery numbers, which fell short of expectations. The electric vehicle manufacturer reported delivering 495,600 vehicles, missing the consensus estimate of 504,800 and the so-called whisper numbers around 500,000.
This marks the first time in Tesla's history that the company has seen an annual decline in delivery volumes.
"Overall we would characterize this is a respectable delivery number although the Street and bulls wanted to see a 500k+ number and the stock will be a bit weak on the knee jerk reaction," the analysts said.
The breakdown of deliveries showed that Model 3 and Model Y vehicles accounted for 471,900 units, while other models contributed 23,600 to the total. Tesla's production for the quarter stood at 459,500 vehicles.
Despite the delivery shortfall, Wedbush analysts expressed high confidence in Tesla's ability to ramp up delivery growth going into fiscal year 2025. The firm anticipates a target delivery growth of 20%-30% for Tesla. Additionally, the expected launch of a lower-priced electric vehicle in early 2025 is seen as a potential catalyst for increasing vehicle deliveries.
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