Tesla stock rose about 5% to close near $392 on October 26, 2026, after Barclays upgraded the electric-vehicle maker and raised its price target to $450 from $370. The bank cited a possible combination with SpaceX alongside expectations for growth in Tesla’s businesses.

Key Takeaways

  • Barclays upgraded Tesla to Overweight from Equal Weight and raised its price target by $80.
  • Independent committees are examining a possible Tesla-SpaceX combination, but no transaction terms have been agreed.
  • The bank also expects automotive growth in 2026 and sees demand for Tesla’s energy-storage products.

Tesla stock gains after Barclays upgrade

Tesla shares traded around $380.45 in premarket trading, up more than 2%, before extending their gains to close near $392. The previous Friday’s closing price was $372.22.

The $450 target implies approximately 15% upside from Monday’s closing level. It is an analyst price target, not an announced acquisition price or a proposed valuation for a SpaceX transaction.

Merger talks remain preliminary

Barclays analyst Dan Levy said a potential combination with SpaceX was a key part of the bullish case for Tesla and could deliver a premium to its shareholders. That is the bank’s assessment, not a guaranteed outcome.

On October 20, Elon Musk confirmed that Tesla and SpaceX had formed independent special committees at shareholders’ request to examine a possible combination. He said he was excluded from the discussions because of conflicts of interest and cautioned that a merger was not inevitable.

No transaction terms have been agreed. Musk said approval would require support from holders of 50% of Tesla’s outstanding shares, rather than just a majority of votes cast.

Growth expectations beyond a deal

Levy also expects Tesla’s automotive business to return to growth in 2026 after two years of declines and pointed to an increase in Robotaxi miles driven.

Barclays said orders for Tesla’s energy-storage products for 2027 are nearly sold out. These operating expectations are part of the bank’s investment case alongside the potential transaction.

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