Tesla stock rating maintained at Buy by Canaccord despite record delivery decline

Investing.com - Canaccord Genuity has reiterated its Buy rating and $303.00 price target on Tesla (NASDAQ:TSLA) following the company’s second-quarter delivery results. According to InvestingPro data, Tesla maintains a strong financial position with a healthy current ratio of 2.0 and more cash than debt on its balance sheet.

Tesla’s Q2 2025 deliveries exceeded Canaccord’s recently lowered estimates by approximately 24,000 units, with strong performance in China, Norway, France, Spain, and Turkey contributing to the better-than-feared results.

Despite the positive surprise, Tesla recorded its largest year-over-year decline in deliveries in company history, falling approximately 14% compared to Q2 2024, which Canaccord attributes partly to the impact of CEO Elon Musk’s political associations.

Canaccord expects potential catalysts for Tesla in the remainder of 2025, including new models, traction from the revamped Model Y, and anticipation surrounding the Robotaxi announcement, noting that Tesla’s recent Impact Report reaffirmed its commitment to launch more affordable vehicles this year.

Energy storage deployments also slowed to approximately 2% year-over-year growth, with Canaccord expressing concerns about energy infrastructure development for AI, stating that "EVs drive the P&L, now and for the foreseeable future" and emphasizing the need to see growth in Tesla’s core business.

In other recent news, Tesla delivered 384,000 vehicles in the second quarter of 2025, surpassing market expectations of around 360,000 units. Deutsche Bank (ETR:DBKGn) maintained its Buy rating for Tesla, highlighting stronger U.S. sales and improved performance in Asian markets as key factors. Despite a 13% year-over-year decline in deliveries, production outpaced deliveries with 410,000 vehicles manufactured during the quarter. Oppenheimer also maintained its Perform rating for Tesla, noting that Model 3 and Model Y deliveries exceeded expectations, which could support margins. In China, Tesla’s sales increased by 0.8% in June, ending an eight-month streak of declining sales. Meanwhile, Elon Musk’s AI startup, xAI Corp., added three banks to a $5 billion debt deal, including Barclays (LON:BARC) and Mitsubishi UFJ (NYSE:MUFG) Financial Group. Separately, President Donald Trump commented on Musk’s dissatisfaction over losing the electric vehicle mandate, suggesting potential further losses. These developments continue to shape Tesla’s business landscape and investor outlook.

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