Canaccord Genuity Maintains Tesla Price Target at $404 Following Gigafactory Texas Visit
Canaccord Genuity has reconfirmed its price target of $404 for Tesla after conducting a visit to Gigafactory Texas. Despite facing some short-term challenges, the investment firm remains optimistic about Tesla’s long-term prospects.
The analysts at Canaccord have reiterated their “Buy” rating for TSLA stock and have revised their delivery estimates for the first quarter of 2025 from approximately 331,000 vehicles to around 362,000 units. While this estimate falls below the consensus estimate of around 417,000 vehicles, Canaccord’s outlook for Tesla remains positive.
According to Canaccord, the delay in vehicle purchases by consumers to access the new Model Y and retooling of factories for Model Y production have impacted delivery estimates for the first quarter of 2025. The firm believes that these factors, along with supply constraints, are contributing to the slower-than-expected delivery numbers.
During their visit to Tesla Giga Texas, Canaccord analysts were impressed by the company’s forward-thinking approach to vehicle design and manufacturing. They commended Tesla for consistently challenging the status quo and pushing the boundaries of innovation.
The analysts also highlighted Tesla’s progress with its Full Self-Driving technology, particularly version 13.2.8. They noted that Tesla’s unboxed manufacturing strategy is expected to improve production efficiencies. Additionally, Canaccord mentioned that Tesla’s robotaxi services are set to launch in Austin during the summer.
In light of Elon Musk’s recent stock market advice during the Tesla All-Hands keynote, Canaccord Genuity emphasized the importance of investing in companies with products that investors believe in. Musk advised investors to focus on companies with great products, pointing out that Tesla continues to innovate and introduce new products.
In conclusion, Canaccord Genuity remains bullish on Tesla’s future prospects and sees the current challenges as temporary setbacks. The firm believes that for investors with a long-term perspective, there are opportunities for growth and success in the electric vehicle market.
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