Canadian investment firm Canaccord Genuity has reduced their price target on Tesla stock from $293 down to $267 following the Tesla’s Q3 2023 earnings call. However, Canaccord is maintaining a Buy rating on TSLA shares despite trimming the target.
In a note explaining the updated valuation, Canaccord analyst Jonathan Dorsheimer said the earnings call lacked its typical “zip” and excitement. He cited Elon Musk’s sober tone reflecting the world’s current mood amidst economic uncertainty.
However, Dorsheimer stresses Canaccord’s long-term bullish view on Tesla remains unchanged. In fact, recent news around the UAW strike, Tesla’s 4680 battery progress, and Optimus robot advances have enhanced their outlook.
But in the near term, Canaccord acknowledges headwinds from rising rates, geopolitical tensions, Cybertruck production ramping, and gradual margin improvement that leaves TSLA trading mostly sideways.
As Dorsheimer puts it, “As we await new products and revenue drivers, the company is managing through a difficult environment.” Thus, Canaccord has tempered its forecasts for margin growth and delivery volumes through 2025.
The target cut seems driven primarily by short-term caution rather than loss of conviction in Tesla’s long-run market positioning. Canaccord sees the current macro climate presenting near-term hurdles as Tesla navigates launching Cybertruck (November 30 Deliveries at Texas Factory), scaling 4680 cells, and energizing new factories.
In summary, while trimming their outlook, Canaccord remains firmly bullish on Tesla’s capabilities once the economic skies clear. The lowered price target reflects pragmatism about potential temporary headwinds rather than negativity about Elon Musk’s grand vision coming to fruition.