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Tesla Stock Surges on SpaceX Merger Buzz
27 Oct
Summary
- Barclays analysts upgraded Tesla stock to overweight due to a potential SpaceX merger.
- Tesla's auto business shows improvement, ending a two-year decline.
- Analysts raised Tesla's price target to $450 from $370.
Tesla shares experienced a significant rally, jumping approximately 5% to $391 on Monday. This surge followed an "overweight" upgrade from Barclays analysts who anticipate a merger between Tesla and SpaceX.
The Barclays report highlighted that the potential merger is now a central factor in the bullish outlook for Tesla. Analysts suggest that an official announcement, made more probable by recent statements from CEO Elon Musk during earnings calls last week, could further boost the stock.
Beyond merger speculation, the analysts also praised the notable improvement in Tesla's automotive sector. This business is on track for growth in 2026, reversing a two-year trend of decline. Additionally, Tesla's robotaxi business shows promising signs based on increased miles driven.
