Tesla (TSLA) stock is under pressure due to concerns about weakness in its electric vehicle (EV) sales amid intense competition and macroeconomic uncertainty. The Elon Musk-led company recently reported lower-than-expected Q1 2026 deliveries. Despite the challenges in the EV business, analysts at Canaccord and Cantor reiterated a Buy rating on TSLA stock. Let’s look at the reasons for their bullish stance.
Claim 55% Off TipRanks
Trade TSLA with leverageTesla stock has declined 23% year-to-date. Shares were down 1.75% on Tuesday.
Canaccord, Cantor Reiterate Buy Ratings on TSLA Stock
Canaccord analyst George Gianarikas reiterated a Buy rating on Tesla stock with a price target of $420. The analyst noted the lower-than-anticipated Q1 deliveries. However, he highlighted that EVs have recently gained strong traction among U.S. customers due to rising gas prices and a surge in used-Tesla pricing in the domestic market. Consequently, Gianarikas sees strong indications of a notable market improvement, especially if Musk can deliver on his assurance of a new family-oriented model that is “way cooler than a minivan.”
The analyst is also optimistic about the potential of the Terafab – Tesla and SpaceX’s “audacious blueprint to fundamentally restructure the semiconductor landscape.” While Gianarikas noted the weakness in Tesla’s energy storage shipments for Q1 2026, he doesn’t expect it to change his long-term outlook. The analyst explained that given the “lumpy” nature of large-scale utility projects and continued demand for grid infrastructure, he views the Q1 weakness as a temporary uncertainty rather than the beginning of a weaker trend.
Additionally, Cantor Fitzgerald analyst Andres Sheppard reiterated a Buy rating on Tesla stock. The 4-star analyst noted the Q1 2026 deliveries miss and the decline in the company’s deliveries for two consecutive years (2024 and 2025). He added that Tesla deployed 8.8 GWh of energy storage products in Q1 2026, significantly lagging the sell-side consensus of 14.4 GWh.
Nonetheless, Sheppard remains bullish on Tesla and highlighted that the company’s Cybercab, Tesla Semi, and Megapack 3 remain on-track for volume production in 2026. He added that the company is also currently developing its first volume production lines for its humanoid robot Optimus, which he expects to see initial deliveries in the second half of 2027.
Is TSLA Stock a Buy, Sell, or Hold?
Given the ongoing challenges, Wall Street has a Hold consensus rating on Tesla stock, based on 13 Buys, 11 Holds, and eight Sells. The average TSLA stock price target of $393.97 indicates about 14% upside potential.
