In pic: Elon Musk
However, no agreement has been announced. The Associated Press reported that Musk played down the possibility of an imminent transaction. Musk warned investors not to assume a merger is certain, and shareholders of both companies would need to approve any deal.
The British bank upgraded the electric vehicle company’s shares from Equal Weight to Overweight and raised its price target from $370 to $450. The new target suggests about 21% upside from Tesla’s closing price last week. Barclays’ $450 price target and Overweight rating remain the bank’s assessment, not a confirmed outcome. Tesla shares were still down more than 17% year-to-date before the upgrade.
Analyst Dan Levy said growing expectations of a merger between Tesla and SpaceX drove the upgrade, though he also pointed to potential improvements in Tesla’s car, energy, and Robotaxi operations. Barclays has issued a new bullish call on Elon Musk’s Tesla. An Overweight rating indicates that an analyst expects a stock to outperform other companies in the same sector.