This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) shares climbed 6% to about $394.5 in afternoon trading Monday as Barclays upgraded the electric vehicle maker and raised its price target, while speculation about a potential SpaceX combination added to investor interest.
Barclays analyst Dan Levy lifted his rating to Overweight from Equal Weight and increased his target to $450 from $370. He cited improving business trends, progress in Robotaxi services and the possibility that a merger with SpaceX could offer Tesla shareholders a premium.
Mizuho also raised its Tesla price target to $460 while maintaining an Outperform rating, providing another positive signal from Wall Street.
The rally follows Tesla’s latest quarterly results, which beat analyst estimates for revenue and earnings per share. Investors are also watching the company’s autonomous-driving initiatives and Full Self-Driving adoption for signs of additional growth.
However, a potential merger remains uncertain and would require shareholder approval. The latest analyst optimism reflects both Tesla’s business outlook and the possibility of a deal, leaving the stock sensitive to changes in either factor.
