Tesla TSLA Gets PT Boost from Canaccord as Fremont Factory Pushes Limits of Possible

Tesla TSLA Gets PT Boost from Canaccord as Fremont Factory Pushes Limits of Possible

Photo: Tesla

Tesla (NASDAQ: TSLAgets a price target boost from Canaccord as the Fremont factory has pushed the boundaries of what is possible, analysts said. The morale of the factory workers is very high, which is a strong positive indicator.

Canaccord Genuity has reiterated its “Buy” rating and raised its price target from $815 to $881 on Tesla after analysts visited the manufacturer's factory in Fremont, California. In a note, George Gianarikas wrote that during an analyst visit to the factory on Friday, they were “mesmerized by the factory's chaotic symphony and employee morale,” according to Proactive Investors. In addition, they were greatly impressed by management's ability to push the boundaries of what is possible at the plant. This refers to Tesla’s ability to increase production capacity of the factory despite the fact that it has a limited size compared to other Tesla facilities.

Tesla opened the factory at the end of 2010 and started production with just 1,000 employees. In March 2020, the company announced a stunning achievement: the production of the 1 millionth vehicle. Just over 2 years later, in July 2022, Tesla announced a new milestone: the production of the 2 millionth vehicle at the Fremont plant.

The demonstration of the ability to develop despite limited conditions cannot but impress and qualitatively distinguishes Tesla from all others in the automotive market. “Tesla's manufacturing proficiency sets it apart from its tech peers and from other auto OEMs, who are years behind in terms of working out idiosyncrasies in building EVs versus ICE while managing a new supply chain reality,” Gianarikas wrote.

The analyst noted that Tesla is in an enviable position when it comes to securing materials critical to the production of batteries for electric vehicles, such as lithium and rare earth materials. The manufacturer has been working for years to improve its supply chain, and its success in the automotive market shows great growth prospects for companies that will work with it.

Gianarikas noted that despite the influence of macroeconomic factors and the recent increase in prices for Tesla cars, the manufacturer has a number of competitive advantages that will remain for some time. “While macroeconomic factors and recent price increases can certainly impact order rates, we estimate Tesla’s EV momentum and competitive lead—from manufacturing to materials procurement, to autonomy—is secured for some time,” Gianikas wrote. “With additional offerings in solar, energy storage, and more to come, Tesla remains the sustainability behemoth.”

© 2022, Eva Fox | Tesmanian. All rights reserved.


We appreciate your readership! Please share your thoughts in the comment section below.

Legal Disclaimer --

This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

Follow me on X


Tesla Giga Shanghai-Made Model Y Now Comes with an Extra Airbag, Bolstering All-Around Safety
Tesla Model Y & Model 3 Are the Absolute Top Sellers in California in 1H 2022

Tesla Accessories