Tesla’s Demand Cools, But Canaccord Is Doubling Down – Raises Price Target To $551

Canaccord emphasized that Tesla’s market position remains unique in the U.S. as a fully scaled and vertically integrated EV manufacturer.

• Canaccord trimmed its forecast for Tesla’s fourth-quarter (Q4) delivery volumes to roughly 427,000 vehicles.
• The firm highlighted that the adjustment reflected a temporary slowdown rather than a structural problem.
• Canaccord said the recent uptick in the stock price suggests investors are focusing past the current quarter’s challenges. 

Canaccord boosted its price target for Tesla Inc. (TSLA) to $551 per share from $482, while keeping a ‘Buy’ recommendation as the electric vehicle maker navigates shifting market dynamics. 

The bullish move signals confidence in Tesla’s long-term prospects despite near-term headwinds.

Revised Delivery Estimates

Canaccord trimmed its forecast for Tesla’s fourth-quarter (Q4) delivery volumes to roughly 427,000 vehicles, down from an earlier projection of 470,000 units, pointing to a more pronounced drop in consumer demand than expected across regions and product lines, according to TheFly.

However, the firm highlighted that the adjustment reflected a temporary slowdown rather than a structural problem, with the recent uptick in the stock price suggesting investors are focusing past the current quarter’s challenges. 

The firm expects "constructive developments beneath the surface" for Tesla.

Tesla stock inched 0.3% higher in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock shifted to ‘neutral’ from ‘bullish’ territory the previous day amid ‘high’ message volume levels. 

Market Reset Or Structural Shift?

According to Canaccord, the conclusion of U.S. electric-vehicle tax incentives presents a short-lived drag on demand but may help shape a stronger, more sustainable market environment. The firm emphasized that Tesla’s market position remains unique in the U.S. as a fully scaled and vertically integrated EV manufacturer. This factor supports its optimistic valuation over the long haul. 

Speaking to CNBC about Tesla’s door safety issues, Canaccord’s senior analyst, George Gianarikas, said the company has a long track record of upholding high safety standards, and Tesla vehicles are among the safest in the world. 

Emerging markets such as Thailand, Vietnam, and Brazil also appear to be accelerating their pace of electric vehicle adoption, which Canaccord views as reinforcing Tesla’s multi-year growth potential. 

The firm noted progress on non-core initiatives, such as Tesla’s robotaxi program, as additional catalysts that could support sentiment.

Slowing EU Sales 

This comes even as Tesla reported a 34% year-on-year slump in car sales in the European market for the month of November. According to the European Automobile Manufacturers’ Association (ACEA), the EV maker had 12,130 new vehicle registrations in the European Union (EU) for November. 

TSLA stock has gained 21% year-to-date. 

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