Tesla (TSLA) Stock Surges 6.52%: Can It Break Above $406?
TLDR
- Tesla stock climbed 6.52% to $396.43 as merger discussions and a Barclays upgrade drew investor attention.
- Tesla and SpaceX formed independent committees to review a possible merger, but neither company has agreed to terms.
- Tesla reported $28.05 billion in third-quarter revenue, while operating income declined 56% year over year.
- Latvia approved Tesla’s supervised Full Self-Driving system, extending its authorized European coverage.
- Analysts identified $406.71 as a potential upper trading boundary, with downside risk remaining below $369.42.
Tesla (TSLA) stock rose 6.52% to $396.43 on Monday, October 26, during a rally tied to merger talks and analyst upgrades. Shares traded near their session high, although some short-term indicators showed weaker momentum. Friday’s closing price was $372.22.
Tesla Stock Gains After Barclays Upgrade
Barclays raised its Tesla rating to Overweight from Equal Weight on Monday. Analyst Dan Levy increased his price target to $450 from $370, citing the company’s car business, robotaxi progress, and a possible SpaceX merger. He expects a deal to carry a premium for shareholders.
The upgrade followed a volatile week for Tesla shares. Investors continued assessing the electric vehicle maker’s results alongside questions about future spending and closer ties with Elon Musk’s rocket company.
Musk said independent committees at both companies are examining a possible Tesla-SpaceX merger. He supports the proposal but has stepped away from committee talks because of conflicting interests. Musk cited chips, robotics and connectivity as opportunities.
No agreement exists, and both boards must review any proposed terms. Musk said approval would require support from holders of half of Tesla’s outstanding shares, presenting another obstacle. SpaceX would need separate corporate approvals.
Tesla Earnings and European Expansion
Tesla reported $28.05 billion in third-quarter revenue and adjusted earnings of $0.48 per share. Free cash flow reached $1.53 billion, although operating income fell 56% from the previous year. The company delivered 486,532 vehicles in the quarter.
Its third-quarter earnings report showed growing driver-assistance subscriptions despite softer profits. Separately, Latvia approved Tesla’s supervised Full Self-Driving system, becoming the tenth European Union country to grant authorization. Drivers must still supervise the system.
Tesla traded above its 20-period average of $379.20 and 50-period average of $370.78. Its 200-period average stood at $386.29, while the Ichimoku Kijun support level was $377.07.
However, an hourly RSI reading of 43.9 pointed to weaker buying pressure. Other readings favored sellers, while MACD remained neutral, according to Traders Union’s technical assessment. This contrasts with Monday’s share-price advance. Tesla is also pursuing Semi truck production and AI chip investments. These projects form part of its wider expansion as investors examine costs and earnings.