Tesla stock gained approximately 2% in premarket trading on October 26 after Barclays issued a bullish upgrade, raising its price target from $370 to $450 and changing its rating from Equal Weight to Overweight.
The revised target represents approximately 21% upside from Tesla's October 23 closing price of $372.22. Barclays' assessment reflects growing confidence in Tesla's core automotive business, energy-storage operations, and autonomous-driving ambitions. The analyst also noted the possibility of a combination between Tesla and SpaceX, which could potentially provide a premium for Tesla shareholders, though the companies have not announced a completed merger.
Automotive and Energy Businesses Drive Outlook
Tesla's automotive business is expected to return to growth in 2026 after two consecutive years of declining sales, with further expansion anticipated in 2027. Demand associated with Full Self-Driving (FSD) and rising exports from Tesla's Shanghai factory could support vehicle sales growth. Barclays highlighted that Tesla's energy business is nearly sold out for 2027, with potential for shipments to increase by more than 50%.
Autonomous-Driving Progress Supports Case
Robotaxi activity has reportedly accelerated in recent weeks, raising expectations for expansion of Tesla's autonomous ride-hailing operations. FSD adoption exceeded 75% among newly purchased Tesla vehicles in North America during the third quarter, according to the analyst's assessment, highlighting the potential for software adoption to become a more significant part of Tesla's growth strategy.
Technical Levels in Focus
Tesla stock is testing a crucial resistance zone after recovering from its August low near $310. The stock is trading around $372, with a descending trendline continuing to cap the recovery. The $377–$380 region represents a key hurdle, with support levels near $367–$370 and $350. A sustained breakout above the descending trendline could open the way toward $400 and potentially $420.
