Tesla (TSLA) investors will focus on margins and the 2024 demand outlook in reviewing Q4 results on Wednesday as the company decides to either continue cutting prices or maintain stable margins, Wedbush Securities said.
“The conference call in 3Q left investors and bulls with many questions and few answers,” and “that uncertainty has been an overhang on the stock” since late October, Wedbush said Tuesday in a report. “The line in the sand around margins must be drawn tomorrow.”
The market expects a 2024 production outlook of 20% unit growth with 2.1 million to 2.2 million units, Wedbush said.
“The reality is EV demand globally is stalling and going through a glut of OEM supply now hitting the market, which in turn has put more pressure on the leader Tesla to cut prices to catalyze demand,” Wedbush said.
Wedbush maintained an outperform rating for Tesla stock with a price target of $350.