With Tesla Inc (NASDAQ:TSLA) set to report its fourth-quarter earnings on Wednesday, the key item for many will be guidance on its margin and demand outlook over the next year given the balance the company had to strike in 2023 with price cuts.
Analysts at Wedbush said that price cuts in 2023 were the right move to ensure healthy demand given increasing competition and higher production rates.
However, they questioned whether the Elon Musk-led electric vehicle maker can continue its cost-cutting strategies, or if it will opt to keep its current pricing to ensure margin stability amid possible declines in EV demand.
“Which pricing path Tesla takes will be a foundational move for the future of Tesla over the coming years in our view,” said analyst Daniel Ives.
Wedbush kept its outperform rating on Tesla stock and maintained a $350 price target.
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