Tesla Stock Surges After Barclays Upgrade on Hopes of a SpaceX Merger
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Key Takeaways
Tesla shares are rallying to start the week as optimism around a potential tie-up with SpaceX grows.
Shares of Tesla (TSLA) rose about 5% to $391 Monday, in the wake of an upgrade to “overweight” by Barclays on expectations of a merger with SpaceX (SPCX).
“We believe the anticipated merger is now a key part of the Tesla bull case,” the analysts wrote, expecting a boost once a related announcement is made, which they believe is more likely after comments by CEO Elon Musk during the companies’ earnings calls last week.
The analysts also lauded improvement in Tesla’s auto business, which is on track to grow this year after two years of declines, and an inflection in its robotaxi business based on miles driven.
The analysts raised their target to $450 from $370, a bit above the mean target compiled by Visible Alpha at $430. Of the 10 analysts tracked, five currently recommend buying the stock, compared to five neutral ratings.
Even with Monday’s gains, shares of Tesla have lost about 13% of their value in 2026.
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