Canaccord Genuity Reiterates Buy on Tesla, $404 Price Target

Canaccord Genuity analyst George Gianarikas reiterated a Buy rating and $404 price target on Tesla (NASDAQ: TSLA).

“Look, we very much appreciate and agree with Mr. Musk’s enthusiasm around the opportunity in AVs and robotics. They are likely to materialize into generationalopportunities.

We have ourselves referred to vehicle autonomy as likely one of the highest value-creating technologies to be deployed. Ever.

And, Tesla is set to accelerate its journey in 2025 with a fleet of unsupervised vehicles on the roads in Austin, Texas in June.

It should be exciting and transformative — particularly considering Tesla’s “camera-only” controversial approach to autonomy.However, in the here and now (“on earth” so to speak), we weren’t so excited by the results, and some near-term commentary left us less than nourished.

Deliveries, reported last month, missed 2024 guidance. Margins were weak — driven largely, we think, by financing incentives.

Management, while calling for growth, did not reiterate the 20-30% delivery growth guidance uttered by Mr. Musk on the last earnings call.

If we heard right, FSD in Europe and China may have been delayed (previously scheduled for 1Q25). There were several things to pick on.

Having said all that, we are sticking with our BUY rating and $404 target.

The particulars were less than ideal, but we have new model introductions to look forward to this year and an “unsupervised” AV show in Austin this summer.”

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