Tesla (NASDAQ:TSLA) shares have been on a tear lately, rallying by 28% over the past five trading sessions. The sudden surge follows a steep drop of nearly 40% from December highs and comes in the wake of a turbulent period marked by Elon Musk’s growing involvement with the new administration and his attempts to reshape the federal landscape.
His vocal support for far-right causes – along with that widely criticized salute – hasn’t done the company any favors. These moves have coincided with a global drop in sales and mounting protests. As a result, many consumers now seem intent on steering clear of a brand they view as tainted beyond repair.
Or is it? Not all think that this is the case. Surveying the situation, Canaccord’s George Gianarikas believes the damage to Tesla’s brand or Musk’s reputation is likely not irreversible. The analyst thinks that perhaps efforts like rescuing stranded astronauts or recognizing Musk as “among the most crucial individuals, if not the most important, in facilitating the transition to a sustainable energy future,” could swing the pendulum back in his favor.
In Gianarikas’ view, Tesla isn’t the first to navigate a rough patch. From Steve Jobs and Palmer Luckey to corporate rebounds like Chipotle, Samsung, and Coca-Cola, history is full of comeback stories. Even Western automakers have survived worse and gone on to thrive.
Nevertheless, Gianarikas does concede that 1Q25 deliveries “won’t likely be a shining moment for Tesla,” though he says that’s less about consumer backlash and more about planned production shutdowns. The company is retooling factories and prepping for the next-generation Model Y.
Beyond the short-term noise, Gianarikas sees green shoots everywhere. The revamped Model Y is set to roll out next quarter, new vehicle launches are lined up for 2025, robotaxi services are gearing up in Austin, and Tesla’s Optimus robots are steadily marching toward reality. These, according to the analyst, all leave Tesla positioned as a key player in a potential future of “sustainable abundance.”
“Potential positive catalysts and growth re-invigorators are ample,” the analyst goes on to add. “For investors with duration and grit, there is a silver-linings playbook.”
While other market watchers have been slashing Q1 estimates, Gianarikas heads in the other direction. His 1Q25 delivery forecast goes from ~331,000 to ~362,100, although that is still below consensus at 417,000.
Interestingly, at the same time, the analyst’s 2025 delivery forecast stays at ~2.02 million, amounting to ~12.8% year-over-year growth and above the Street’s call for 1.96 million.
All things considered, Gianarikas is doubling down on his bullish stance. He’s keeping a Buy rating on TSLA and setting his price target at $404 – a call that implies a 45.5% upside from where the stock sits today. (To watch Gianarikas’ track record, click here)
13 other analysts keep a positive stance on the EV leader, yet with an additional 11 Holds and Sells, each, the stock only claims a Hold (i.e., Neutral) consensus rating. Going by the $335.32 average price target, a year from now, shares will be changing hands for a ~16% premium. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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