Tesla Model 3
Tesla shares rise with optimistic $35K Model 3 outlook, $450 price target, and ‘Buy’ rating from Canaccord
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generation of $1.23B and cash on the balance sheet of $3.7B, the liquidity concerns and convertible note repayment are no longer valid concerns in our view,” the analyst wrote.
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.
Tesla has revealed an awesome Model 3 and Model Y incentive to help consumers make the jump to one of its affordable mass-market vehicles, but it’s ending soon.
Tesla is offering one free upgrade on eligible inventory of the Model 3 and Model Y until February 2.
This would help buyers receive the most expensive paid option on the vehicle at no additional cost, meaning white interior or a more premium paint option will be free of charge if you take delivery on or before February 2.
Tesla states on its website for the offer:
“Only for limited inventory while supplies last. Price displayed on inventory listings already deducts the cost of the free option.”
Tesla says its one free upgrade offer on eligible U.S. inventory for the Model 3 and Model Y ends February 2.
With this incentive, buyers receive the most expensive paid option on the vehicle at no additional cost (up to $2k in savings). pic.twitter.com/IhoiURrsDI
— Sawyer Merritt (@SawyerMerritt) January 21, 2026
This latest incentive is just another advantage Tesla has by selling its vehicles directly and not using some sort of dealership model that relies on approvals from higher-ups. It is important to note that these programs are offered to help stimulate demand and push vehicles into customers’ hands.
It is not the only incentive Tesla is currently offering, either. In fact, there is a much larger incentive program that Tesla is working on, and it has to do with Full Self-Driving transfers, which could result in even more sales for the company through Q1.
Tesla is ending its FSD Transfer program on March 31, as it plans to transition to a Subscription-only basis with the self-driving suite for anyone who has not already purchased it outright.
This could help drive some on-the-fence buyers to new vehicles, but it remains to be seen. Given the timing of the program’s demise, it appears Tesla is hoping to use it to add additional sales and bolster a strong Q1 2026.
Interior and exterior paint colors can add up to $2,000 if you choose the most premium Ultra Red body color, or an additional $1,000 for the Black and White interior option. The discount, while small, could help get someone their preferred design configuration, instead of settling for something that is not quite what they want.
Tesla is dominating in the United Kingdom so far through 2025, and with about two weeks left in the year, the Model Y and Model 3 are leading the way.
The Model Y and Model 3 are the two best-selling electric vehicles in the United Kingdom, which is comprised of England, Scotland, Wales, and Northern Ireland, and it’s not particularly close.
According to data gathered by EU-EVs, the Model Y is sitting at 18,890 units for the year, while the Model 3 is slightly behind with 16,361 sales for the year so far.
The next best-selling EV is the Audi Q4 e-tron at 10,287 units, lagging significantly behind but ahead of other models like the BMW i4 and the Audi Q6 e-tron.
GOOD NEWS 🇬🇧 Tesla is absolutely crushing the UK electric vehicle market in 2025 💥
The numbers are in, and the dominance is clear. With an impressive amount of 42,270 vehicles delivered year-to-date, the brand now commands a solid 9.6% market share of the total auto market 🆒… pic.twitter.com/dkiGX9kzd0
— Ming (@tslaming) December 18, 2025
The Model Y has tasted significant success in the global market, but it has dominated in large markets like Europe and the United States.
For years, it’s been a car that has fit the bill of exactly what consumers need: a perfect combination of luxury, space, and sustainability.
Both vehicles are going to see decreases in sales compared to 2024; the Model Y was the best-selling car last year, but it sold 32,610 units in the UK. Meanwhile, the Model 3 had reached 17,272 units, which will keep it right on par with last year.
Tesla sold 50,090 units in the market last year, and it’s about 8,000 units shy of last year’s pace. It also had a stronger market share last year with 13.2 percent of the sales in the market. With two weeks left in 2025, Tesla has a 9.6 percent market share, leading Volkswagen with 8 percent.
The company likely felt some impact from CEO Elon Musk’s involvement with the Trump administration and, more specifically, his role with DOGE. However, it is worth mentioning that some months saw stronger consumer demand than others. For example, sales were up over 20 percent in February. A 14 percent increase followed this in June.
News
Tesla Model 3 and Model Y dominate China’s real-world efficiency tests
The Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km.
Tesla’s Model 3 and Model Y once again led the field in a new real-world energy-consumption test conducted by China’s Autohome, outperforming numerous rival electric vehicles in controlled conditions.
The results, which placed both Teslas in the top two spots, prompted Xiaomi CEO Lei Jun to acknowledge Tesla’s efficiency advantage while noting that his company’s vehicles will continue refining its own models to close the gap.
Tesla secures top efficiency results
Autohome’s evaluation placed all vehicles under identical conditions, such as a full 375-kg load, cabin temperature fixed at 24°C on automatic climate control, and a steady cruising speed of 120 km/h. In this environment, the Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km, as noted in a Sina News report.
These figures positioned Tesla’s vehicles firmly at the top of the ranking and highlighted their continued leadership in long-range efficiency. The test also highlighted how drivetrain optimization, software management, and aerodynamic profiles remain key differentiators in high-speed, cold-weather scenarios where many electric cars struggle to maintain low consumption.
Xiaomi’s Lei Jun pledges to continue learning from Tesla
Following the results, Xiaomi CEO Lei Jun noted that the Xiaomi SU7 actually performed well overall but naturally consumed more energy due to its larger C-segment footprint and higher specification. He reiterated that factors such as size and weight contributed to the difference in real-world consumption compared to Tesla. Still, the executive noted that Xiaomi will continue to learn from the veteran EV maker.
“The Xiaomi SU7’s energy consumption performance is also very good; you can take a closer look. The fact that its test results are weaker than Tesla’s is partly due to objective reasons: the Xiaomi SU7 is a C-segment car, larger and with higher specifications, making it heavier and naturally increasing energy consumption. Of course, we will continue to learn from Tesla and further optimize its energy consumption performance!” Lei Jun wrote in a post on Weibo.
Lei Jun has repeatedly described Tesla as the global benchmark for EV efficiency, previously stating that Xiaomi may require three to five years to match its leadership. He has also been very supportive of FSD, even testing the system in the United States.
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