Barclays Upgrades Tesla Stock Amid Potential SpaceX Merger

Barclays upgraded Tesla Inc. stock to overweight from equal weight and increased its price target to $450. The investment bank cited a potential merger between Tesla and SpaceX as a primary driver for the stock's upside.

Elon Musk announced last week that committees from both companies have been formed to discuss the combination, which he described as a "good idea." Barclays analyst Dan Levy indicated that the expected merger and a potential premium to Tesla stock would provide significant growth opportunities.

Beyond the merger, the upgrade reflects a recovery in Tesla's automotive business and rising exports from Giga Shanghai. Levy also highlighted strong demand for Tesla's Energy business from data centers, which could result in shipment growth exceeding 50%. Furthermore, an increase in miles driven by Tesla's robotaxis has increased confidence in the company's ability to compete with Waymo.