Tesla Inc (NASDAQ:TSLA) reported fourth quarter vehicle delivery numbers that disappointed Wall Street but analysts at Wedbush remain confident the EV-maker can accelerate delivery growth into 2025.
The analysts see Tesla achieving 20% to 30% delivery growth, boosted by the launch of its lower-priced EV in early 2025.
For the fourth quarter Tesla reported vehicle deliveries of 495,570, below the Street consensus of 506,800, representing the first annual decline in the company’s history.
This saw the company’s shares tumble 7% to $376 in the early afternoon on Thursday.
“Overall we would characterize this is a respectable delivery number although the Street and bulls wanted to see a 500,000-plus number and the stock will be a bit weak on the knee-jerk reaction,” Wedbush analysts wrote in a note to clients.
“Any sell-off today on weaker Q4 delivery numbers we are strong buyers.”
They noted that they have never seen Tesla as simply a car company, having always viewed it as a “leading disruptive technology global player."
“The next step in this broader Tesla strategic vision begins is the autonomous and AI era which will be accelerated under a Trump White House....we believe Tesla remains the most undervalued AI play in the market today," they wrote.
“The laser focus for Tesla is the 2025 reaccelerated delivery growth story and full self driving (FSD) penetration with autonomous the grand vision for [CEO Elon] Musk & Co.”
Wedbush reiterated its ‘Outperform’ rating and $515 price target on Tesla.