Canaccord Genuity is ready to look past Tesla’s near-term demand weakness. The investment firm reiterated its buy rating on the electric vehicle maker and hiked its price target to $551 from $482, signaling a 13% gain ahead. Despite this price hike, analyst George Gianarikas reduced his deliveries outlook for the fourth quarter to reflect a sharper-than-anticipated deterioration in demand. But he added that this seems to be a blip on the radar for Tesla. TSLA YTD mountain TSLA YTD chart “There are constructive developments beneath the surface that support our BUY rating and justify a higher price target, even with the 4Q25 earnings cut,” Gianarikas wrote. “With Tesla’s recent share-price strength, the market seems to be looking through the quarter, and we intend to do the same.” The analyst noted that while the end of U.S. electric vehicle subsidies has hurt demand in the near term, it is also “forcing a healthier, more durable market to emerge” and resetting to be more fundamentals-driven. In his opinion, only Rivian could be a plausible, long-term second-place contender. “This shakeout is clarifying which automakers built dedicated EV platforms, software, and capital plans versus those that treated EVs as mere compliance projects,” he added. “Only brands with strong products, cost discipline, and loyalty are positioned to keep/ gain share. That’s a good thing for Tesla.” Meanwhile, electric vehicle adoption is also rising in emerging markets such as Thailand, Vietnam and Brazil. These markets represent nascent opportunities that could one day create meaningful long-term upside for Tesla. Gianarikas also applauded Tesla’s robotaxi rollout, despite it happening slower than previous expected. “Potentially more expansive news flow around the Optimus humanoid robot program in 2026 could further enhance Tesla’s perceived optionality in nonautomotive profit pools. Taken together, these underlying positives outweigh the near-term earnings reset in the valuation framework, supporting an increase in our target price from $482 to $551 even as 4Q25 delivery estimates move lower,” the analyst concluded. Shares of Tesla have popped 21% this year.
