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Tesla shares rise with optimistic $35K Model 3 outlook, $450 price target, and ‘Buy’ rating from Canaccord

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Tesla stock (NASDAQ:TSLA) received a notable vote of confidence this Monday, with investment firm Canaccord Genuity predicting a massive rally this year amidst the electric car maker’s efforts to close in on the production of the $35,000 Model 3. In its recent note, Canaccord upgraded TSLA from a hold to a buy rating. The company’s 12-month price target for the electric car maker was also raised from $330 to $450 per share, representing a 40% rally from TSLA’s closing price of $305.80 last Friday.

In a note to clients on Monday, Canaccord analyst Jed Dorsheimer stated that the Street appears to be underappreciating the increasing prevalence of electric vehicles on the auto market. The company also pointed out that it expects Tesla to run into fewer challenges this year.

“The EV penetration story is underappreciated by the Street. We see a more stable 2019 with far fewer concerns for investors in the company,” the Canaccord analyst wrote.

While the company’s skeptics viewed the recent price adjustments that Tesla rolled out to its vehicles as a point of criticism, Dorsheimer notes that the electric car maker’s decision to lower the cost of its cars is proof that the cost-cutting and right-sizing initiatives the company has undertaken are resulting in progress in its efforts to produce the $35,000 Model 3. The analyst also notes that Tesla’s financials are showing some degree of strength over the previous quarters.

“We view the recent string of price cuts as further proof that the cost-cutting and right-sizing that the company has undertaken are resulting in concrete movement towards the ultimate goal of an affordable $35,000 Model 3. With the strong operating cash flow generation of $1.23B and cash on the balance sheet of $3.7B, the liquidity concerns and convertible note repayment are no longer valid concerns in our view,” the analyst wrote.

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Apart from an optimistic outlook on Tesla’s continuing Model 3 ramp and the company’s finances, Canaccord also noted that concerns around Tesla’s governance have been addressed by the addition of the company’s two new independent board members — Larry Ellison and Kathleen Wilson-Thompson — both of whom appear to be working well with CEO Elon Musk. Canaccord also mentioned Tesla’s Autopilot driver-assist system as a difference-maker in the self-driving field, considering the company’s lead over its competitors and the potential of autonomous driving as a whole in the future of transportation.

Amidst Canaccord’s upgrade, Tesla continues to pursue international deliveries for the Model 3. Over the past week, Tesla has begun deliveries in the European region, with Elon Musk even dropping by on the company’s Tilburg plant to deliver some vehicles himself. Tesla’s efforts to promote the Model 3 in China are also underway, with test drives ongoing in several key cities. Tesla’s determination in China was evident in an incident last week after a test drive Model 3 Performance unit crashed in Shenzen, China. Despite concerns that Shenzen might not have another test vehicle for a while due to the accident, Tesla was able to ship another Model 3 Performance to the city quickly, allowing it to restart its test drive program almost without a hitch.

So far, Canaccord’s updated ratings on Tesla appear to be received well by the company’s investors. As of writing, Tesla stock is trading up 3.47% on Monday’s open, trading at $316.49 per share.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla sells 3 million Model 3 since 2017, one in every 1.5 minutes

This translates to one Model 3 being sold every 1.5 minutes on average for the past eight years.

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Credit: Tesla China

Tesla has announced that the Model 3 sedan has sold 3 million units since it started customer deliveries in 2017. As per the electric vehicle maker, this translates to one Model 3 being sold every 1.5 minutes on average for the past eight years.

Massive Milestone

Tesla China VP Grace Tao announced the Model 3’s milestone on Weibo, highlighting that the all-electric sedan has been a tried and tested vehicle that has earned accolades throughout its tenure. She also highlighted that in a recent test, Car and Driver gave the Model 3 a perfect score. 

“Model 3 has become the choice of more than 3 million car owners worldwide, and has won the global pure electric sedan sales champion for seven consecutive years,” Tao wrote in her Weibo post. 

She also invited everyone to try and test drive the Model 3 sedan, so they could experience the vehicle personally. “Everyone is welcome to come to the store to test drive and experience this global car and champion car,” the Tesla executive added.

Tesla’s Mainstream Bet

There was once a time when Tesla’s future relied on the Model 3’s success. When the Model 3 was unveiled, Tesla was still gaining its footing as a premium automaker that produces the Model S and Model X. The Model 3 was the company’s first mass-market car, and it was Tesla’s first foray into serious mass production. At the time, it was no exaggeration to state that Tesla’s survival depended on the Model 3.

The Model 3’s runaway success was a victory not just for Tesla but for the overall electric vehicle sector as a whole. Because the Model 3 was simply a great car, electric or otherwise, it was able to prove that there is serious demand for reasonably-priced mass market EVs. It was also able to pave the way for the Model Y, Tesla’s mass market all-electric crossover that ultimately became the world’s best-selling car in 2023 and 2024.

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Tesla Model 3 ranks as the safest new car in Europe for 2025, per Euro NCAP tests

Despite being on the market longer than many of its rivals, the Tesla Model 3 continues to set the bar for vehicle safety.

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Credit: Tesla Asia/X

The Tesla Model 3 has been named the safest new car on sale in 2025, according to the latest results from the Euro NCAP. Among 20 newly tested vehicles, the Model 3 emerged at the top of the list, scoring an impressive 359 out of 400 possible points across all major safety categories.

Tesla Model 3’s safety systems

Despite being on the market longer than many of its rivals, the Tesla Model 3 continues to set the bar for vehicle safety. Under Euro NCAP’s stricter 2025 testing protocols, the electric sedan earned 90% for adult occupant protection, 93% for child occupant protection, 89% for pedestrian protection, and 87% for its Safety Assist systems.

The updated Model 3 received particular praise for its advanced driver assistance features, including Tesla’s autonomous emergency braking (AEB) system, which performed well across various test scenarios. Its Intelligent Speed Assistance and child presence detection system were cited as noteworthy features as well, as per a WhatCar report.

Other notable safety features include the Model 3’s pedestrian-friendly pop-up hood and robust crash protection for both front and side collisions. Euro NCAP also highlighted the Model 3’s ability to detect vulnerable road users during complex maneuvers, such as turning across oncoming traffic.

Euro NCAP’s Autopilot caution

While the Model 3’s safety scores were impressive across the board, Euro NCAP did raise concerns about driver expectations of Tesla’s Autopilot system. The organization warned that some owners may overestimate the system’s capabilities, potentially leading to misuse or inattention behind the wheel. Even so, the Model 3 remained the highest-scoring vehicle tested under Euro NCAP’s updated criteria this year.

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The Euro NCAP’s concerns are also quite interesting because Tesla’s Full Self-Driving (FSD) Supervised, which is arguably the company’s most robust safety suite, is not allowed for public rollout in Europe yet. FSD Supervised would allow the Model 3 to navigate inner city streets with only minimal human supervision.

Other top scorers included the Volkswagen ID.7, Polestar 3, and Geely EX5, but none matched the Model 3’s total score or consistency across categories. A total of 14 out of 20 newly tested cars earned five stars, while several models, including the Kia EV3, MG ZS, and Renault 5, fell short of the top rating.

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Tesla upgrades Model 3 and Model Y in China, hikes price for long-range sedan

Tesla’s long-range Model 3 now comes with a higher CLTC-rated range of 753 km (468 miles).

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Credit: Tesla China

Tesla has rolled out a series of quiet upgrades to its Model 3 and Model Y in China, enhancing range and performance for long-range variants. The updates come with a price hike for the Model 3 Long Range All-Wheel Drive, which now costs RMB 285,500 (about $39,300), up RMB 10,000 ($1,400) from the previous price.

Model 3 gets acceleration boost, extended range

Tesla’s long-range Model 3 now comes with a higher CLTC-rated range of 753 km (468 miles), up from 713 km (443 miles), and a faster 0–100 km/h acceleration time of 3.8 seconds, down from 4.4 seconds. These changes suggest that Tesla has bundled the previously optional Acceleration Boost for the Model 3, once priced at RMB 14,100 ($1,968), as a standard feature.

Delivery wait times for the long-range Model 3 have also been shortened, from 3–5 weeks to just 1–3 weeks, as per CNEV Post. No changes were made to the entry-level RWD or Performance versions, which retain their RMB 235,500 and RMB 339,500 price points, respectively. Wait times for those trims also remain at 1–3 weeks and 8–10 weeks.

Model Y range increases, pricing holds steady

The Model Y Long Range has also seen its CLTC-rated range increase from 719 km (447 miles) to 750 km (466 miles), though its price remains unchanged at RMB 313,500 ($43,759). The model maintains a 0–100 km/h time of 4.3 seconds.

Tesla also updated delivery times for the Model Y lineup. The Long Range variant now shows a wait time of 1–3 weeks, an improvement from the previous 3–5 weeks. The entry-level RWD version maintained its starting price of RMB 263,500, though its delivery window is now shorter at 2–4 weeks.

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Tesla continues to offer several purchase incentives in China, including an RMB 8,000 discount for select paint options, an RMB 8,000 insurance subsidy, and five years of interest-free financing for eligible variants.

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