Canaccord Genuity raised its price target on Tesla by 14.3% to $551 on Monday, after the company reached two new all-time stock highs within a single week.
The firm’s target implies an upside potential of 14.5% based on last Friday’s closing price of $481.20.
After the news of Musk’s 2018 pay package being reinstated by the Delaware court after years of legal battles, Tesla shares traded as high as $499 on Monday before dropping to opening levels.
The stock has jumped 16.5% in the past 30 days, mostly driven by progress on its autonomous projects.
Canaccord has reiterated a Buy rating on the stock, with analyst George Gianarikas highlighting an attractive demand environment for EVs, despite policy changes, and significant growth opportunities in autonomous driving.
The firm’s take is based on “Tesla‘s long-duration, generational growth opportunities in areas such as robotics, autonomy, energy storage, and ‘sustainable abundance,’ as well as the recently improved structural backdrop in the US.”
EV Market Changes
In a new research note published on Monday — and obtained by PriceTarget — the analyst wrote that the firm expects lower fourth quarter deliveries, as demand surged in the third quarter ahead of the federal EV tax credit deadline.
However, “the reset in the US EV market is laying the groundwork for a more durable and attractive long-term demand environment.”
Additionally, “EV penetration in emerging markets is accelerating,” which Gianarikas sees as “reinforcing Tesla‘s potential multi‑year growth runway beyond the US.”
Autonomy Projects
To Gianarikas, the global deployment of the Full Self-Driving (FSD) software and the expansion of the Robotaxi — both city-wise and fleet-wise — are “increasingly important components of the Tesla equity story.”
While news around the Optimus humanoid robot have winded down, the “potentially more expansive news flow around the Optimus humanoid robot program in 2026 could further enhance Tesla‘s perceived optionality in non-automotive profit pools.”
In the third quarter of 2025, Tesla‘s automotive revenue represented $21.2 billion out of the total revenue of $28.1 billion — about 75% of its gains.
According to several analysts over the past months, most of Tesla‘s stock valuation is, however, due to its autonomy projects — which do not yet generate significant revenue.
Musk Pay Packages
To Canaccord’s analyst, the “recently approved compensation packages for Mr. Musk appear to align incentives and long-term value creation,” as they integrate “major platform milestones in autonomy and AI.”
Approved at the November Annual Shareholder Meeting, the package is tied to the deployment of 1 million humanoid robots delivered, 1 million Robotaxis in commercial service, and 10 million paid Full Self-Driving (FSD) subscriptions maintained for at least three months.
By then, Tesla was still fighting for the reinstatement of the CEO pay package approved in 2018 in a Delaware court.
On Monday, a court ruling reversed a lower court’s cancellation of the package and awarded $1 in nominal damages, effectively restoring 303 million shares to the chief executive officer.
The process comes to an end after several years of legal fight over the record-setting award, now worth nearly $150 billion.
