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Tesla Gains on Canaccord Upgrade Citing Apple-Like Energy Ecosystem

Tesla's battery innovations, cell design, and auto structural integration will widen its lead over rivals, Canaccord Genuity analyst Jed Dorsheimer said Monday.

Tesla  (TSLA) - Get Tesla Inc Report shares jumped higher in premarket trading Monday after analysts at Canaccord Genuity lifted their rating on the clean-energy carmaker as it moves toward an "Apple-esque ecosystem" of energy products.

Canaccord analyst Jed Dorsheimer said Tesla is poised to "radically" change the battery power market with its industry-leading technology and production capacity, adding that its successful transition to mass-market electric vehicle production will allow it to "attack and conquer another trillion-dollar market in energy generation and storage."

Dorsheimer raised his rating on Tesla to "buy" from "hold" and boosted his price target by 155%, to $1,071.00 per share, citing similarities between Apple's  (AAPL) - Get Apple Inc. Report "Think Differently" campaign and Tesla's power and storage ambitions.

"As traditional OEMs rush to buy themselves into the EV megatrend, they can be deemed the late majority," Dorsheimer said. "Tesla has positioned itself as The Brand in energy, and as its solar and energy storage products supply constraints are removed, consumers will be able to become more entrenched in its electrification ecosystem."

"Consumers rave about the in-car software of Tesla and the ease of connectivity," he added. "We expect this consumer/product interaction and admiration to intensify as consumers add solar generation and Powerwall storage products, mimicking the all-encompassing Apple product ecosystem."

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Tesla shares were marked 3.7% higher in early trading Monday to change hands at $701.66 each, a move that nudges the stock closer to positive territory for the year.  

Earlier this month Tesla delivered 184,800 new cars over the three months ended in March, up more than 100% from last year and largely ahead of Wall Street estimates of around 177,000 vehicles

Tesla produced 180,338 Model 3s and Model Ys, the company said, and delivered 182,780. A further 2,020 Model S and X cars were added to the delivery total.

Tesla also sold 35478 of its China-made cars in March, the China Passenger Car Association (CPCA) reported on April 9, up from 10,160 over the same period last year. Tesla's China sales were around a fifth of its overall total in 2020 - when it delivered a record 499,550 vehicles - up from just 12% in 2019.

Tesla Raises Vehicle Prices (Again)

The company will post its first-quarter earnings on Monday, April 26, after the market close.