Canaccord Genuity has reduced its 12-month price objective for Tesla (TSLA) to $520 from $551 but left its rating on the shares at Buy. The revised target remains substantially higher than Tesla’s prevailing market price of $431.46 and falls between the analyst high and low targets of $600 and $130, respectively.
The firm said the cut reflects a recalibration of its valuation framework. Canaccord now applies a multiple of about 46 times its revised 2028 estimated non-GAAP earnings per share of $11.30, down from its prior 2028 EPS estimate of $11.98. By contrast, InvestingPro data noted that Tesla currently trades at a price-to-earnings ratio approaching 300, a measure that far exceeds the company’s diluted EPS of $1.45 over the last twelve months.
In its analysis, Canaccord characterizes Tesla as more than an automaker - the firm views the company as a proxy for an emergent paradigm tied to the convergence of artificial intelligence, robotics and the decarbonization of energy systems. The firm said an investment in Tesla amounts to backing the broader vision promoted by its leader.
Canaccord also emphasized Tesla’s approach to vertical integration, framing it as a strategy of "strategic sovereignty" rather than merely a means to boost margins. The research note pointed to the company’s efforts to secure supply chains in an environment the firm described as geopolitically unstable.
The broker defended its premium valuation multiple, noting it is more than double the multiples assigned to other members of the so-called Magnificent 7. Canaccord justified that premium on the basis of what it called "long-duration, generational growth opportunities" across robotics, autonomy, energy storage and what it terms sustainable abundance. At the same time, the firm acknowledged there is a "slim" margin for error in its projections for operational improvement.
Other recent analyst actions and company metrics were highlighted alongside Canaccord’s update. Tesla reported fourth-quarter revenue of $25 billion and earnings per share of $0.50, results the firm said were in line with consensus expectations. The company’s automotive gross margin, excluding emission credits, improved to 17.9%, a gain of 250 basis points sequentially.
Broker reactions have varied. Mizuho raised its price target to $540 and maintained an Outperform rating, citing Tesla’s pivot toward AI. Barclays reiterated an Equalweight rating and kept a $360 target while pointing to Tesla’s plan to phase out the Model S and Model X by the next quarter. Goldman Sachs moved its price target to $405 and kept a Neutral rating, referencing the company’s increased emphasis on AI initiatives including Full Self-Driving and robotaxi ambitions. Jefferies maintained a Hold rating with a $300 target, highlighting Tesla’s robust core auto margin and cash performance. Baird reiterated an Outperform rating with a $548 price objective, noting the company’s plan to increase its capital expenditure outlook to over $20 billion by 2026.
Taken together, these updates reflect analysts’ responses to Tesla’s strategic shift toward AI-driven technologies and an evolving vehicle lineup. The mix of higher and lower targets across the brokerage community underscores differing views on how quickly Tesla can convert its strategic initiatives into sustainable financial gains.