$TSLA · Schwab Network · 2026-10-26

So Barclays is upgrading Tesla here to uh overweight from Equal here, raising the price target to $450 and that's up from $370. Now they're talking about the potential SpaceX merger which is going to drive a lot of that vertical integration and also because of Musk leadership obviously that could be a major driver uh to provide synergies for both of these companies.

They also look at a stronger core business outlook and that is actually reflected by the earnings that we saw last week. Diane, you are starting to see maybe a bottoming when it comes to the gross margin.

Uh, and that actually has improved and you are still seeing some relative strength uh, when it comes to other sectors of their other portions of their business and also kind of rightsizing their business for that matter.

Uh, and they do believe that signs that robo taxi is reaching an inflection point within the market is another reason why they are not only changing their rating but also raising the price target.

So Tesla is actually seeing a nice little bid early this morning. Once again, I think the buyout news is probably one of the bigger factors for this name.

And I think from a technical standpoint, you're really looking at Tesla trying to break above that 200 day moving average, which is sitting at 8 $386 right now. And I think that has been the area of resistance if you look at the last two and a half weeks.

And if you're actually able to power above that, that's where you probably get additional uh you know, investor enthusiasm for this name, at least in the near term.

There's also this thinking from Barclays and this was an earlier note, not one related to this one, uh that they believe that they could see an announcement regarding an acquisition between the two companies or merger between the two companies uh before December.