Tesla price target raised to $490 at Canaccord on delivery, energy gains

Investing.com -- Canaccord Genuity lifted its price target on Tesla to $490 from $333, reiterating a Buy rating after reassessing delivery trends, new product launches, and the company’s energy storage prospects.

The new target implies about 10% upside from the last closing price. 

Canaccord analysts said their latest checks across about 30 countries led to higher delivery estimates, marking “a positive break in trend” after several quarters of slowing growth.

They added that management’s commitment to new vehicle models should bolster global sales momentum and help offset the loss of U.S. tax credits after the third quarter.

“These new vehicles should be interesting. Stay tuned,” Canaccord wrote in a note.

In energy storage, the broker expects stronger momentum as demand accelerates from utilities and hyperscale data centers. With growing resistance to relying solely on the grid, “energy storage will play a material role in behind-the-meter solutions,” the note said.

Elon Musk’s recent use of alternative on-site power for his xAI facility was cited as an example of this trend, though the analysts noted the environmental risks tied to such projects.

Canaccord also flagged the importance of Musk’s new compensation package, which sets aggressive long-term goals while ensuring his continued leadership at Tesla.

The plan could yield significant shareholder returns if targets are met and would also give investors potential exposure to Musk’s AI venture, xAI.

“Given Mr. Musk’s singular business achievements, we see his commitment to the company and bold targets as – mostly - a positive,” the firm wrote.

Earlier this month, Tesla secured approval to begin road trials of its autonomous ride-hailing service in Arizona.

According to the state’s Department of Transportation, the company plans to deploy self-driving robotaxis in the Phoenix metro area, though the tests will include safety drivers behind the wheel.

Tesla had originally submitted its application in June, seeking permission to run pilot operations for the program.