A Tesla upgrade by Barclays on October 26, 2026, raised the stock to Overweight from Equal Weight and lifted its price target to $450 from $370. Analyst Dan Levy cited a potential combination with SpaceX, improving core business trends and early signs of stronger Robotaxi activity. Tesla shares rose 1.81% in premarket trading, a snapshot rather than a closing gain.

Tesla upgrade rests partly on a potential SpaceX deal

Levy called a combination with SpaceX “a key part of the Tesla bull case” and said he viewed it as effectively settled. That is the analyst's assessment, not confirmation of an agreed transaction.

He considers an all-stock acquisition of Tesla by SpaceX the most likely structure. Barclays said approval would require more than 50% of each company's outstanding voting power, describing that threshold as a high hurdle.

Levy argued that a possible takeover premium offers upside and that investors may be reluctant to short Tesla ahead of a deal. Those are expectations about investor behavior, not a guarantee against share-price declines.

Auto, energy and Robotaxi expectations support the outlook

Beyond the merger scenario, Levy said Tesla's automotive business is on track to grow in 2026 after two years of declines. He also described the energy business as nearly sold out for 2027 amid data-center demand, which Barclays believes could support shipment growth of more than 50%.

Barclays' growth expectations extend beyond the September 30 reporting period covered by Tesla's third-quarter 2026 filing and should not be read as completed results.

Levy also flagged a sharp increase in Robotaxi miles driven in recent weeks. The assessment did not include a mileage figure in the supplied information, leaving the scale of that change unquantified.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.