Barclays upgrades Tesla to Overweight, price target $370 to $450
Barclays' Dan Levy moved Tesla to Overweight from Equal Weight and lifted his price target to $450 from $370, calling a SpaceX combination "a key part of the Tesla bull case"; the stock closed up 5.21% at $391.62.
Barclays analyst Dan Levy upgraded Tesla on Oct. 26 to Overweight from Equal Weight and raised his price target to $450 from $370, above the $409 consensus cited in coverage.
The main driver is a possible merger with SpaceX, which Levy called "a key part of the Tesla bull case." With special committees now formed at both boards, he treats a deal as likely, expects a takeover premium to lift the shares, and argues a pending deal would deter short sellers and limit downside.
He also pointed to the core business: autos on track to grow this year after two years of declines, and an energy business nearly sold out for 2027.
Risks remain. Approval requires more than half of each company's voting power, a hurdle Barclays itself calls high, and no deal terms have been released. Tesla's Q3 GAAP operating margin fell to 2.6% from 5.8% a year earlier, with R&D up 69%. The shares rose from Friday's $372.22 close to $391.62, up 5.21%.
Summaries are prepared by the Tesla Briefing editorial team and may not capture every nuance of the original reporting. You are solely responsible for your own investment decisions.