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- Tesla stock could gain 13% this fiscal year as the company's deliveries will rise on the recent price cuts.
- China's key EV manufacturer has lowered the prices of its models, which will increase demand.
- Wedbush forecasted that deliveries would reach at least 420,000 in the current quarter and reiterated its $225 price target.
According to Wedbush, Tesla stock could rise 13% this year as China deliveries of electric vehicles are expected to explode following the recent price cuts.
The firm reiterated its target price for Tesla shares and predicted that its stock would reach $225 per share by the year's end. Analysts cited Tesla's recent price reductions in response to weakening vehicle demand last fiscal year. This led to the company slashing twice its Model 3 and Model Y prices in China.
Analyst Dan Ives has previously stated that these discounts have been a major driver of sales. He cited Wedbush's survey in which 70% of 500 surveyed Chinese EV customers said they were positively influenced this year by the price reductions to purchase a Tesla.
According to the firm, Tesla's first quarter deliveries will reach at least 420,000 across all models. 402,000 of those sales would be from the Model Y or Model 3. This is slightly more than the required rate to reach 1.8 million total deliveries by 2023.
Wedbush analysts stated that Tesla's Model Y/3 price actions have paid major dividends this quarter around gaining mindshare from domestic players. The macro is uncertain and a recession could be imminent, but Tesla is currently well-positioned with its price points and with the demand exceeding supply so far in 2023.
The Tesla stock has surged 76% in the past year. This is a dramatic turnaround from the poor performance of 2022. In rising inflation and higher rates, the stock lost 65% and nearly wiped out $700 million in its market capital. This made 2022 its worst year. Wedbush was bullish on Tesla this year, but it removed Tesla from its Best Ideas List in November.
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By: jsor@insider.com (Jennifer Sor)
Title: Tesla is poised to rally 13% this year as China deliveries pop after latest price cuts, Wedbush says
Sourced From: markets.businessinsider.com/news/stocks/tesla-stock-price-rally-price-cuts-china-deliveries-ev-wedbush-2023-3
Published Date: Wed, 29 Mar 2023 15:51:46 +0000
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