Tesla's Q1 Delivery Numbers 'Underwhelming,' But Not Surprising Given Current Global EV Backdrop, Wedbush Says

MT Newswires Live04-02 22:53

Tesla's (TSLA) Q1 delivery numbers were quite "underwhelming," but this was not a surprise given the current electric vehicle backdrop across geographies, Wedbush said in a Thursday note.

For the company, Europe remains a significant headwind as Tesla is still navigating the regulatory environment for Full Self-Driving, or FSD, approval, with sales in the region awaiting a rebound once the approval comes, which is expected to happen in H1, Wedbush said.

Artificial intelligence remains the focus for Tesla in 2026, Wedbush said, adding that the company's decision to switch FSD to a subscription-only model is expected to drive the technology's penetration to 50% and above and change Tesla's financial model and margins.

The rollout of unsupervised robotaxi rides in Austin is an incremental step toward the broader launch in multiple cities in 2026, with Cybercabs' production starting in April or May, Wedbush said.

The firm maintained its outperform rating on Tesla with a $600 price target.

Price: 366.30, Change: -14.97, Percent Change: -3.93

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