Investing.com-- Canaccord Genuity analysts remain optimistic about Tesla Inc (NASDAQ:TSLA), maintaining a “Buy” rating despite the ongoing sell-off in the stock.
In a recent research note, the brokerage acknowledged near-term headwinds but emphasized potential long-term catalysts that could reinvigorate investor confidence.
Tesla shares have come under pressure following a mix of macroeconomic concerns and brand challenges, with first-quarter deliveries expected to fall below consensus estimates, analysts noted.
Canaccord Genuity revised its delivery projection to approximately 362,000 vehicles, below the consensus estimate of 417,000. However, analysts believe production constraints, particularly related to the new Model Y retooling, are a primary factor rather than a fundamental demand decline.
The firm reaffirmed its $404 price target for Tesla, unchanged from its previous estimate.
The investment firm cited its recent visit to Tesla’s Gigafactory in Austin, Texas, as a key reason for its optimism.
“It’s hard not to be impressed with how future-forward Tesla is — whether it’s vehicle design or manufacturing. Consistently rethinking the status quo,” Canaccord Genuity analysts wrote.
They highlighted advancements in the company’s Full Self-Driving (FSD) software, with version 13.2.8 demonstrating significant improvements. The note also pointed to Tesla’s “unboxed” manufacturing strategy, aimed at boosting production efficiencies, and the upcoming launch of robotaxi services in Austin this summer.
Despite near-term uncertainty, Canaccord Genuity sees Tesla playing a pivotal role in the transition to sustainable energy.
“For investors with duration and grit, there is a silver-linings playbook,” analysts added..