Barclays has upgraded Tesla to overweight from equal weight, citing a potential combination with SpaceX as a key catalyst. The bank also raised its price target on the electric vehicle stock to $450 from $370, implying roughly 21% upside from Friday’s close.
“Recent discussions surrounding Tesla have increasingly centered on a potential combination with SpaceX,” analyst Dan Levy wrote in a client note on Monday. “Given the strong expectation of a deal—and the likelihood of a premium for Tesla shareholders—we view this as a significant upside driver for the stock.”
Elon Musk said last week that a merger between Tesla and SpaceX would be a “good idea,” adding that committees at both companies have been established to explore a potential combination.
Beyond the merger speculation, Levy noted that Tesla’s core and emerging businesses remain positioned for growth. The automotive segment is on track to expand this year after two years of declines, with further upside expected in 2027 driven by full self-driving demand and increased exports from Giga Shanghai. He also highlighted Tesla’s energy business, which is nearly sold out for 2027 due to strong demand from data centers, potentially supporting shipment growth of more than 50%.
Levy added that robotaxi miles have shown a sharp inflection, increasing his confidence that Tesla can compete with Waymo’s fleet.
According to LSEG data, 25 of the 49 analysts covering Tesla rate the stock a buy or strong buy, while 22 maintain a hold rating. Tesla shares are down more than 17% year to date.
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