Wedbush has maintained an Outperform rating and a $225.00 price target for Tesla, expressing optimism ahead of the electric automaker’s Q1 delivery report.
Tesla’s delivery numbers for the first quarter are expected to be released soon, and analysts are eager to see how demand has held up in an unstable macro environment, reports Investing.com.
According to analysts, Tesla experienced a surge in demand throughout 1Q, particularly in China, after implementing price cuts for Model Y and Model 3 earlier this year. This demand could allow Tesla to reach at least 420k deliveries for the quarter, with the potential for more depending on delivery logistics this week.
Despite the uncertain macroeconomic climate, analysts anticipate Tesla may introduce further price cuts in both the US and China to stimulate consumer demand.
Back in January, Tesla made some significant price drops across its vehicle lineup, reducing the cost of its Model S, Model X, Model 3 and Model Y worldwide.
Wedbush estimates that Tesla will report 402,000 Model 3 and Y units and 18,000 Model S and X deliveries for the quarter, with Model Y likely seeing an uptick in demand following price cuts in China and the US.
Recent Cox Automotive data says Tesla is on pace to shatter sales records for Q1, citing expected strong deliveries.
Analysts noted that although a recession might be looming, Tesla is well-positioned with its current price points, as demand has outpaced supply so far in 2023.
Shares of Tesla are currently up 1.75% for the trading day on Wednesday.
