06:43 AM EDT, 03/27/2025 (MT Newswires) -- Tesla (TSLA) is expected to report weak Q1 deliveries, as demand in Europe, the US, and China falls, with customers holding off purchases in anticipation of the Model Y refresh and a new lower-cost model launching in the summer, Wedbush Securities said in a note on Thursday.

The brokerage firm said the weakness in demand is also due to the company's involvement in the DOGE initiative spearheaded by Musk for the Trump Administration.

However, the brokerage is optimistic about Tesla's growth following Musk's recent all-hands meeting, which reassured investors, showcasing leadership and emphasizing the company's long-term vision, including advancements in autonomous technology and robotics.

"Tesla's future is in many ways the brightest it's ever been in our view given autonomous, FSD, robotics, and many other technology innovations now on the horizon," said Wedbush.

Wedbush maintained an 'outperform' rating with a $550 price target.