TLDR
- Canaccord analyst raised Tesla price target from $333 to $490, a 47% jump
- Tesla shares climbed 33% in September, best monthly gain since November 2024
- Q3 delivery data due Thursday with analyst checks suggesting upside to consensus
- Energy storage business showing momentum from data centers and utilities
- Stock trading near December all-time high of $489 per share
Tesla shares took a breather Tuesday morning despite receiving another major price target increase from Wall Street. The pullback came after an epic September that left analysts racing to adjust their targets higher.
Canaccord Genuity analyst George Gianarikas boosted his price target to $490 from $333 Monday evening. He maintained his Buy rating on the stock.
The analyst revealed he debated downgrading Tesla before ultimately staying bullish. He noted a similar situation in January where he also kept his Buy rating and was glad he did.
Tesla stock dipped 0.9% to $439.09 in premarket trading. The broader market also showed weakness with S&P 500 and Dow futures down slightly.
The average Wall Street price target now sits around $347 per FactSet. That’s up roughly $33 for September. Tesla typically trades above average analyst targets, which is nothing new for the stock.
Best Month Since Election Day
Shares surged 33% through Monday’s close in September. That represents the strongest monthly performance since November 2024 when Trump won the presidential election.
CEO Elon Musk supported Trump’s campaign. The relationship later cooled, and Trump’s tax legislation eliminated the $7,500 federal EV tax credit.
Tesla reports Q3 delivery numbers this Thursday. Wall Street expects around 448,000 vehicles, down about 3% from last year’s Q3 total of 463,000.
Gianarikas conducted research across 30 countries showing higher delivery estimates than consensus forecasts. He described this as a positive break in trend after quarters of sluggish growth.
New model launches could boost global sales and offset tax credit losses. The analyst called these upcoming models interesting but provided no additional details.
Energy Storage Momentum Builds
Gianarikas expressed strong optimism about Tesla’s energy storage division. He anticipates accelerating demand from utilities and hyperscale data centers driving growth.
The analyst noted energy storage will become increasingly important for behind-the-meter solutions. He pointed to Musk using alternative on-site power for his xAI facility as evidence of this shift.
Musk’s new compensation package also caught Gianarikas’ attention. The plan sets ambitious targets while keeping Musk at the helm.
Meeting those targets could generate substantial returns for shareholders. The package also gives investors indirect exposure to xAI, Musk’s AI venture.
Tesla leverages AI for self-driving capabilities and humanoid robot training. This AI angle has captivated investors recently.
Technical Analysts See $520 Potential
Market technician Frank Cappelleri from CappThesis believes Tesla could hit new all-time highs. He noted momentum typically strengthens once major resistance levels break.
Cappelleri sees $520 as a realistic target. Tesla’s previous record high was approximately $489 reached in December.
September could rank among Tesla’s ten best months ever. That would require closing at $461.24, up 4.1% from Monday. Such a finish would edge past November 2024’s gain.
Tesla’s strongest month remains May 2013 when shares rocketed 81% higher.
Year to date, Tesla stock has gained about 10%. Over the trailing 12 months, shares have jumped 70%.
On TipRanks, Tesla carries a Hold consensus rating with 14 Buy ratings, 12 Hold ratings, and eight Sell ratings.
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