Tesla price target lowered to $222 from $234 at Canaccord

Canaccord lowered the firm’s price target on Tesla to $222 from $234 and keeps a Buy rating on the shares following the Q1 report. The analyst says fuller information from management “helped to at least partially solidify” both the near-term and longer-term earnings trajectories of Tesla “that had been so muddied over the last few weeks.” Demand has been weaker than expected and margins “weren’t great,” but management still expects to grow units in 2024, the analyst tells investors in a research note. The firm says it learned that the cancellation of a next-generation, low-cost, non-Robotaxi vehicle “was merely a half-truth.” With the change in plan, Tesla now plans to accelerate the launch of new vehicles, including more affordable models that will use both its next-gen platform and current manufacturing lines, notes Canaccord.