Barclays analyst Dan Levy highlighted the increasing discussions around a merger between Tesla and SpaceX, which he believes could lead to a premium on Tesla's stock. This speculation has prompted Barclays to raise its price target for Tesla from $370 to $450.
Levy also pointed out that Tesla's core automotive business is expected to rebound after two years of decline, with significant growth anticipated by 2027, driven by demand for full self-driving technology and increased exports from Giga Shanghai.
Additionally, Tesla's Energy division is reportedly nearing full capacity for 2027 due to strong demand from data centers, which could lead to over 50% growth in shipments. Levy expressed confidence in Tesla's competitiveness in the autonomous vehicle market, particularly against rivals like Waymo, as the company's robotaxi fleet has shown a notable increase in miles driven.
Despite a year-to-date decline of over 17% in Tesla's shares, the overall sentiment among analysts remains positive, with 25 out of 49 recommending a buy or strong buy rating