Tesla price target raised to $350 from $300 at Wedbush

Wedbush raised the firm’s price target on Tesla to $350 from $300 and keeps an Outperform rating on the shares. The firm says Wednesday night was “another poker win for the Tesla story” as Musk & Co. came in with Auto gross margin of 18.1%, which was above the Street’s line in the sand and whisper numbers of 17.5%. While margins are clearly coming down significantly from the mid 20% level over the past year, this was the smart strategy for Tesla to catalyze volumes as the multiple price cuts have been in a homerun success in China, Europe, and the U.S., Wedbush argues. Tesla still expects to see deliveries in the 1.8M range for 2023 with some production downtime in Q3 for factory upgrades, which the firm believes are the drumroll to some Model 3 refreshes around the corner. Wedbush would characterize the overall quarter as better than expected with commentary generally optimistic with some macro caveats.