10:02 AM EST, 01/02/2025 (MT Newswires) -- Tesla's (TSLA) Q4 deliveries of about 495,600 vehicles missed Street estimates of about 504,800 vehicles as well as Street whisper numbers of about 500,000, Wedbush said Thursday in a note to clients.

The figure was also Tesla's first annual decline in delivery volumes in its history, the note said.

"Overall we would characterize this is a respectable delivery number although the Street and bulls wanted to see a 500k+ number and the stock will be a bit weak on the knee jerk reaction," said Wedbush analysts including Daniel Ives.

The analysts said, however, that they remain "highly confident in Tesla's ability to accelerate delivery growth into FY25 with 20%-30% delivery growth targets the focus for the Street as [Tesla] is also expected to launch its lower-priced EV in early 2025 to spur growth for vehicle deliveries."

Meanwhile, the focus is also changing to artificial intelligence technology, Wedbush said, adding the company's AI projects may see a boost under the new Trump administration.

"We believe Tesla remains the most undervalued AI play in the market today," the note said.

Wedbush kept Tesla's outperform rating and $515 price target.

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