Barclays on Monday upgraded Tesla to overweight from equal weight and raised its price target to $450 from $370, citing discussion of a possible combination with SpaceX, CNBC reported¹.

The new target implied about 21% upside from Friday's close, according to that account¹. Analyst Dan Levy wrote that talk around Tesla had skewed toward a potential combination with SpaceX, ticker SPCX, and that an expected deal premium should support the stock¹.

CNBC said Elon Musk last week called a Tesla-SpaceX merger a "good idea" and that committees at both companies had been formed to discuss a combination¹.

Beyond a deal, Levy argued Tesla's auto business was on track to grow this year after two years of declines, with further upside possible in 2027 from full self-driving demand and exports from Giga Shanghai, CNBC reported¹. He also said Tesla had described its energy business as nearly sold out for 2027 on data-center demand, which he thought could support more than 50% growth in shipments¹.

Levy said robotaxi miles driven had risen sharply, increasing his confidence Tesla could compete with Waymo, according to CNBC¹. Of 49 analysts covering Tesla, LSEG data cited by CNBC showed 25 with buy or strong-buy ratings and 22 with holds; shares had fallen more than 17% year to date¹.

The CNBC report did not include comments from Tesla or SpaceX beyond Musk's earlier remarks, did not describe deal terms, and did not say whether a combination is imminent¹.

Sources

1. CNBCBuy Tesla ahead of potential SpaceX merger, says Barclays6:52 AM

Read the original at CNBC ↗