Canaccord Genuity is bullish on Tesla Inc‘s TSLA long-term prospects while simultaneously being cautious of a near-term growth slowdown.
What Happened: “We think Tesla is Apple on steroids as it focuses on manufacturing and a higher level of vertical integration,” Canaccord said in a note. The firm continues to maintain a ‘buy’ rating on the stock with a price target of $267.
The company believes the EV giant to be the ‘sustainability behemoth’ with its vehicle autonomy goals and the stainless steel Cybertruck. While the stock had a strong 2023 despite reduced earnings estimates, Canaccord analysts are cautious regarding the coming years given an upcoming growth slowdown.
“…we wonder — are already-lowered estimates for 2024 and 2025 low enough?…as we enter a growth pause, what will drive the stock for now?” they wrote in the note.
The analysts are now awaiting the company’s upcoming earnings call, scheduled for Jan. 24, for answers.
Why It Matters: On Tuesday, Tesla reported annual production and deliveries of 1,845,985 units and 1,808,581 units, respectively. The numbers are higher than the company’s targeted deliveries of 1.8 million units for the year.
Price Action: Tesla shares closed nearly 130% higher last year. On Tuesday, the shares closed at $248.42.
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