Leading Tesla analyst Tony Sacconaghi of Canaccord Genuity just cut his price target on $TSLA from $267 to $234, (Tesla Q4 Earnings: Record Production Annualized at 2M Vehicles, Next-Gen Platform Coming). However, he maintains a Buy rating on shares, arguing the electric vehicle leader still has massive long-term potential despite recent challenges.
In his view, Tesla faces growth headwinds in 2023 that will likely keep the stock rangebound until catalysts emerge. But the bull case remains very much intact.
As Sacconaghi put it, “2024 will be subdued; probably a trough, but still relatively slow.” He models ~18% revenue growth this year, a notable slowdown from 2022’s rapid expansion.
The analyst reminds investors that growth curves are rarely smooth, even for innovative tech companies. Macroeconomic and geopolitical turmoil can interrupt an otherwise strong adoption trend.
But importantly, Sacconaghi doesn’t buy the argument that Tesla is just another automaker with lackluster prospects. In his view, Tesla has changed the auto industry paradigm thanks to its tech and AI leadership.
Just as Apple, Netflix, and Amazon disrupted their respective sectors, Tesla has done the same in sustainable transport. And the company has multiple potential catalysts to reaccelerate growth.
In the near term, Sacconaghi believes margin improvement could reignite bullish sentiment on Tesla stock in 2025. Price cuts may be moderating, allowing profitability to bounce back this year.
Longer-term, he sees Tesla’s next-gen vehicles, full self-driving rollout, and humanoid Optimus robot as multi-year growth drivers. In his view, vehicle autonomy alone is one of the most value-creating technologies ever.
So while Tesla faces temporary headwinds in a choppy macro environment, Canaccord maintains conviction in the long-term story. Sacconaghi urges investors to be patient as Tesla sets up for the next leg higher over the next 3-5 years.
In summary, the analyst believes now is not the time to get bearish on Tesla – just hold tight through potential near-term turbulence. The EV pioneer still has a massive runway for growth and innovation. Tesla bulls must weather the storm before the next wave of upside catalyzes.
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