Canaccord Genuity's Gianarikas: Tesla results increased conviction, but cautiousness remains

Tesla's Business Strategy - Canaccord Genuity maintains a buy rating on Tesla stock despite slightly reduced price targets [1] - The market is focused on how Tesla will transition from its current EV business to a future centered on robot cars and humanoids [2] - Tesla plans to increase production capacity, signaling confidence in future EV sales growth [3] - Robo-taxi market penetration is limited by a cost of over $1 per mile, needing to fall below $0.75 to achieve mass adoption [5][6] - Robo-taxi market may not significantly impact Tesla's P&L until 2030 and beyond [6] Rare Earth Minerals Market - The US consumes approximately 50,000 tons of rare earth magnets annually [8] - MP Materials plans to produce 10,000 tons, and USA Rare Earths about 4,800 tons, indicating a significant supply gap in the US market [9] - The US needs more domestic magnet production and the oxides/powders to make them, requiring partnerships with countries like Australia and Canada [9] - The cost of rare earth materials from China is at depressed levels, and the US and Western countries need to determine a sustainable cost structure [10][11] - US magnet production will likely be significantly more expensive than Chinese production due to different cost structures [12]