Tesla (TSLA) has been rated "Outperform" by Wedbush, maintaining a 12-month price target of $515, despite reporting Q4 deliveries of 495.6k vehicles, which fell short of the Street's 504.8k estimate. This marks the first annual decline in delivery volumes in Tesla's history. The focus now shifts to 2025, where Tesla aims for 20%-30% delivery growth, bolstered by the anticipated launch of a lower-priced EV. Wedbush highlights the potential of Tesla's AI and autonomous driving technologies, stating, "The $1 trillion of AI valuation has started to get unlocked in the Tesla story," with expectations of a march towards a $2 trillion valuation over the next 12 to 18 months.
Wedbush's investment thesis is centered on Tesla's strategic vision, emphasizing the role of Full Self-Driving (FSD) and autonomous vehicle penetration as key growth drivers. The report suggests that FSD penetration could exceed 50%, significantly altering Tesla's financial model and margins. The analysts view Tesla not just as an automotive company but as a leading disruptive technology player, with the autonomous and AI era being the next phase of its evolution.
Tesla's current stock price is $394.28, reflecting a slight decrease of 0.02% from the previous close.