Tesla stock (NASDAQ: TSLA) continues to impress Wall Street analysts, with Canaccord Genuity analyst George Gianarikas raising the firm’s price target on Tesla shares to $490 from $333. This adjustment comes as Tesla shares have been consistently trading well above the previous target, currently sitting at around $443. The stock has surged by over 34 percent in the last month, showcasing strong growth and investor confidence.
In a recent note to investors, Gianarikas outlined Tesla’s strategic initiatives and growth prospects across its various divisions. Despite concerns surrounding the removal of the $7,500 EV tax credit, Canaccord remains optimistic about Tesla’s future prospects beyond being just an automotive stock play.
Affordable Models are expected to drive higher deliveries for Tesla in the upcoming quarter, with the firm anticipating the introduction of new, budget-friendly models to offset the loss of the tax credit. Tesla has hinted at unveiling these models in the second half of the year, and with just one quarter left in 2025, investors are eagerly awaiting their launch. Canaccord believes that these new models will not only boost global sales momentum but also help mitigate any potential decline in US sales post the EV tax credit expiration.
Tesla Energy, an often overlooked division within the company, presents significant growth opportunities according to Canaccord. With the increasing demand for power and the rise of data centers, energy storage solutions could play a crucial role in Tesla’s future growth trajectory. The firm highlights the importance of behind-the-meter solutions and the potential for energy storage to revolutionize grid resiliency and power distribution.
Elon Musk’s Comp Package also factors into Canaccord’s bullish outlook on Tesla. The new compensation plan for Musk aims to incentivize and retain the CEO for the long term, benefiting both investors and the company. While the targets set for Musk are ambitious, Canaccord sees them as achievable given Musk’s track record and business acumen. The firm views Musk’s commitment to Tesla and bold targets as a positive sign for the company’s future success.
In terms of Price Target and Rating, Canaccord acknowledges the challenges in valuing Tesla stock but remains optimistic about the company’s potential catalysts. With the promise of affordable EVs, advancements in Robotaxi and Optimus projects, Tesla appears well-positioned for further growth. Canaccord reiterates its ‘Buy’ rating on Tesla shares and raises its price target to $490.
In conclusion, Tesla’s strong performance and strategic initiatives continue to attract positive attention from analysts like Canaccord Genuity. With a focus on innovation, sustainability, and growth across multiple divisions, Tesla remains a compelling investment opportunity for investors looking to capitalize on the future of transportation and energy.