Wedbush Reiterates Outperform Rating on Tesla (TSLA)
Wedbush analyst Daniel Ives reiterated an Outperform rating and $300.00 price target on Tesla (NASDAQ: TSLA)
The analyst comments: "After the bell, Tesla delivered an Aaron Judge-like margin performance vs. Street expectations featuring a 200bps beat on auto gross margin ex credits, which has been a large overhang to the Tesla story looking over the past few quarters. Automotive ex-credits gross margin beat at 17.1% vs. the Street’s 15.1% bogey which was front and center metric for the Street as this is clearly an indication that Musk & Co is continuing to focus on its profitability side while balancing its plans for the future. With price cuts fully in the rearview mirror now, we view this as a key piece for the Street to exemplify Tesla’s ability to expand its margins as the company continues its AI/FSD transformation over the coming years. The bulls will cheer this quarter in a much-needed margin boost after a choppy 2024."