Pro Research: Wall Street eyes Tesla's strategic roadmap

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Tesla Inc. (NASDAQ: NASDAQ:TSLA), the electric vehicle (EV) and clean energy giant, has continued to navigate through a challenging landscape in 2023. Despite facing headwinds, Tesla's stock has shown resilience. The company's U.S. market share has experienced a decline, slipping below 50% for the first time, as competition intensifies and market dynamics shift. Wedbush Securities has reiterated an OUTPERFORM rating for Tesla and raised the 12-month price target from $310 to $350, based on expectations of market share gains and margin stabilization in 2024. Tesla's consensus numbers for 2024 suggest more conservative delivery estimates at 2.1 million units, down from 2.3 million units, but Wedbush projects a potential increase to 2.2 to 2.3 million units.

Tesla's strategic pricing decisions, including recent price cuts, have been crucial in preserving demand but have prompted concerns about the sustainability of auto margins. Wedbush anticipates that Tesla's strategic pricing cuts, particularly in China, will drive volumes and improve margins, with Auto Gross Margin (GM) returning above the key 20% threshold during 2024. While the company's vertical integration and rapid growth remain central