04:19 PM EDT, 03/13/2024 (MT Newswires) -- Tesla (TSLA) is facing near-term headwinds, but the negative sentiment is "way overdone," Wedbush said in a note Wednesday.

Wedbush said there is a fierce price competition in China's auto market. However, these aggressive price reductions are expected to taper off into spring/summer 2024. This is a positive news for Tesla and the overall electric vehicle industry.

Although Tesla is still tracking to exceed 2 million units in 2024, the 2.1 million to 2.2 million units range is still achievable, despite softer Q1 performance, the investment firm said.

Wedbush maintained Tesla's outperform with a price target of $315.

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