Canaccord Genuity lowered the fourth-quarter delivery estimate for electric vehicle (EV) maker Tesla (TSLA) due to weaker-than-anticipated demand resulting from the end of the $7,500 EV tax credit. However, Canaccord boosted the price target for TSLA stock to $551 from $482 while reiterating a Buy rating, citing “constructive developments beneath the surface.”
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Canaccord Stays Bullish on TSLA Stock
While Canaccord Genuity analyst George Gianarikas revised Tesla’s Q4 delivery expectations lower, he believes that the “reset in the US EV market is laying the groundwork for a more durable and attractive long-term demand environment.” The analyst also stated that rapid EV adoption in emerging markets supports Tesla’s potential multi‑year growth beyond the domestic market.
Additionally, Gianarikas expects the global progress of full self-driving (FSD) technology and the anticipated rollout of a larger robotaxi fleet next year to be vital to TSLA’s growth story, which could improve investor sentiment. The analyst highlighted that the recently approved compensation package for CEO Elon Musk intends to align incentives and long-term value creation by integrating major milestones in autonomy and artificial intelligence (AI).
Gianarikas also thinks any favorable development related to Tesla’s Optimus humanoid robot program in 2026 could further improve sentiment around the company’s earnings capacity beyond its EV business.
The analyst noted that while the other Magnificent 7 stocks are trading at about 21x 2028 earnings per share (EPS) estimate, his price target for TSLA stock is based on a multiple of nearly 46x (up from 42x) his non-GAAP EPS estimate of $11.98 (up from $11.46). Gianarikas contends that TSLA’s higher valuation multiple is backed by several positives, including growth prospects in areas such as robotics, autonomy, and energy storage, and the “recently improved structural backdrop in the U.S.”
Is TSLA Stock a Buy, Sell, or Hold?
Wall Street has a Hold consensus rating on Tesla stock based on 11 Buys, 12 Holds, and nine Sell recommendations. The average TSLA stock price target of $385.34 indicates 21% downside risk. Tesla stock has risen 21% year-to-date.
