<div id="readability-page-1">Tesla (NASDAQ:TSLA) shares continued falling in Tuesday's trading session, declining another 3% after already dropping nearly 3% on Monday, as investors reacted to concerns surrounding the company's EV business. Part of the weakness appears connected to uncertainty surrounding demand conditions after Tesla recently raised prices on higher-end versions of the Model Y in the US., marking a meaningful change following nearly two years of aggressive price cuts designed to support deliveries and market share.<h3>Claim 55% Off TipRanks</h3>Looking for exposure to SpaceX &amp; Anthropic? Check out AGIX ETF The price increase itself was relatively modest, with Premium and Performance versions of the Model Y rising by as much as $1,000. Still, the move appears to have created debate about whether Tesla believes demand conditions are stabilizing enough to ease away from its long-running discounting strategy. At the same time, the broader EV industry has lost momentum compared to the rapid growth seen earlier in the decade. Several traditional automakers have scaled back EV expansion plans, while some companies have redirected battery investments toward energy storage businesses rather than passenger vehicles. Yet, Canaccord analyst George Gianarikas still believes the long-term transition toward electrification remains intact. &#34;Don't you forget about EVs,&#34; Gianarikas says, pushing back against the growing skepticism that has surrounded the sector during recent years. Gianarikas believes the market has become too pessimistic regarding EVs after several manufacturers reduced expansion plans and shifted priorities toward other business segments. However, the analyst still sees electrification as the long-term direction for the transportation industry. Gianarikas maintained &#34;an unwavering belief in the inevitable transition to electric transport,&#34; arguing that transportation is still moving steadily toward electric-powered vehicles despite the market's current doubts. The analyst also views Tesla's latest pricing move as more meaningful than it may initially appear. After years spent lowering prices to stimulate demand, Gianarikas believes the company's willingness to raise prices again could reflect improving confidence regarding underlying market conditions. &#34;It's not a massive hike, but it's still a big deal,&#34; Gianarikas wrote, adding that the increase may represent the beginning of a different phase for Tesla after an extended period dominated by price reductions. To this end, Gianarikas assigns Tesla shares a Buy rating, while his $450 price target points to 13% upside from current levels. (To watch Gianarikas' track record, click here) The rest of Wall Street's view on Tesla, however, remains fairly mixed. TSLA claims a Hold (i.e., Neutral) consensus rating based on 29 analyst reviews, including 12 Buy ratings, 12 Holds, and 5 Sells. Meanwhile, the average 12-month price target stands at $403.86, implying just 2% upside potential from current levels. (See TSLA stock forecast) </div>

TSLA

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Tesla (TSLA) shares fell 3% on Tuesday, following a nearly 3% drop on Monday, amid concerns over demand after recent price increases for the Model Y. Analyst George Gianarikas maintains a Buy rating, believing the long-term shift to electric vehicles is intact despite current market skepticism. He sees the price hike as a sign of improving confidence in demand. Wall Street's consensus on Tesla is mixed, with a Hold rating and an average price target of $403.86, indicating limited upside.

- Tesla shares fell 3% on Tuesday, adding to a nearly 3% drop on Monday, driven by investor concerns about demand for electric vehicles following price increases on Model Y versions.  
- Analysts note that this price increase reflects a potential shift in Tesla's pricing strategy after years of discounts, amidst a broader slowdown in the EV market as traditional automakers reduce expansion plans.  
- Despite mixed Wall Street ratings, Canaccord analyst George Gianarikas maintains a Buy rating on Tesla, arguing that the electric vehicle market's long-term transition remains intact, with a price target of $450 indicating a 13% upside.

Why Tesla Stock (TSLA) Is Down Today and What This Analyst Expects Next