Wedbush has maintained its "Outperform" rating on Tesla (TSLA) with a 12-month price target of $550, citing the company's robust autonomous and AI strategy as a key growth driver. Despite Tesla's FY4Q24 results falling short of expectations, the reaffirmation of its next-generation vehicle platform and the accelerated timeline for launching unsupervised full self-driving (FSD) in Austin by June 2025 are seen as significant milestones. Wedbush estimates the AI and autonomous opportunity to be worth at least $1 trillion for Tesla, with the unsupervised FSD expected to be available across the US by the end of 2025.
Tesla's Q4 revenue of $25.71 billion was below the Street's $27.22 billion estimate, with automotive revenue down 8% y/y. The company delivered 495,570 units, missing the Street's estimate of 504,770. However, energy and storage revenue surged 113% y/y, surpassing expectations. Wedbush highlights several growth drivers, including the lower-cost next-generation vehicle, Cybercab production in 2026, and a significant expansion in the energy and storage business.
Wedbush's analysts note, "If you are a bull and believer in the AI autonomous vision for Tesla, this morning those investors feel even more confident in their thesis." Tesla's current stock price is $398.60, up 2.44% from the previous close.