Tesla Rises Over 2% Pre-Market as Barclays Upgrades to Overweight, Lifts Price Target 20% to $450

TradingKey - Tesla (TSLA) rose over 2% in U.S. pre-market trading to $380.45. Barclays (BCS) upgraded its rating on Tesla from "Equal Weight" to "Overweight" and raised its price target from $370 to $450, representing an upside of about 21% from current levels. The bank is optimistic about the growth recovery prospects of Tesla's core automotive business, while noting that Robotaxi commercialization progress, energy storage orders, and the potential merger with SpaceX could all serve as catalysts driving the company's valuation higher.

Source: TradingView

In Barclays' view, Tesla's growth thesis is evolving. After two consecutive years of decline, the company's automotive business is expected to re-enter a growth phase, providing support for overall performance.

Meanwhile, the Robotaxi business has also begun showing new progress, with a notable increase in recent driving mileage, reflecting steady advancement in the division. As the robotaxi business gradually develops, the market's assessment of Tesla's future revenue streams may also shift accordingly.

The energy storage business is another growth driver favored by Barclays. The bank noted that Tesla's energy storage orders for 2027 are nearly sold out, demonstrating that market demand remains robust. If these orders are converted into revenue as planned, the energy storage business is expected to further enhance the company's growth potential beyond its automotive segment.

In addition, expectations surrounding a potential merger between Tesla and SpaceX (SPCX) have also drawn attention. Elon Musk previously confirmed during an earnings call that both companies have established special committees to evaluate the possibility of a merger. Barclays believes the market has already formed high expectations for this potential deal, and if pursued, the transaction may need to offer a premium to Tesla shareholders. However, the merger remains in the evaluation stage, and whether it will ultimately be reached—along with the specific terms of the deal—remains uncertain.