Canaccord Genuity Reiterates Buy Rating on Tesla (TSLA)
Canaccord Genuity analyst George Gianarikas reiterated a Buy rating and $254.00 price target on Tesla (NASDAQ: TSLA).
The analyst comments "Tesla’s 2Q24 earnings results were mostly uneventful after the delivery announcement earlier this month. Yes, auto gross margins were weaker than expected — but were likely impacted by $622M in restructuring costs. We were also looking for meaningful metrics and color around FSD take rates after recent price cuts — but the most management would offer was that they say a “meaningful increase”. Overall, mostly expected news — including a mention of a return to EV penetration growth in 2Q24. The real, meaty catalysts start on 10/10 – the new date for Robotaxi day. That's when we get more detail around Tesla's planned robotaxi vehicle and service offerings. On the call, Mr. Musk sounded confident that “unsupervised” FSD could be achieved late this year/next year — way, way before our expectations — although he has been optimistic on his timelines in the past. Mr. Musk also dismissed regulatory concerns, implying that if FSD could achieve MBTF (mean time between failure) better than a human, “what regulator could really stand in the way of that?” We take a more cautious stance on the regulatory climate, but are aware our perspective could prove unnecessarily wary. We will see. As we have stated in our previous work, we worry about the predictability and transparency (and cost) of an end-to-end approach like Tesla’s. Be on the lookout for new vehicles, as well, including more affordable models, to start production in 1H25… another meaty catalyst. We reiterate our BUY and $254 price target, based on 28x our 2026E non-GAAP EPS."
For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.
Shares of Tesla closed at $246.38 yesterday.