Tesla stock gained momentum in premarket trading on Monday after Barclays issued a bullish upgrade, raising its price target from $370 to $450. The move reflects growing confidence in Tesla’s automotive business, energy-storage operations, and autonomous-driving ambitions. The potential combination with SpaceX has also attracted investor attention, although the investment case extends beyond merger speculation. With Robotaxi activity reportedly accelerating and Full Self-Driving adoption increasing, investors are assessing whether Tesla’s improving business outlook can support further gains in TSLA stock.
Tesla stock rose approximately 2% in premarket trading on October 26 after Barclays upgraded the electric vehicle maker from Equal Weight to Overweight and increased its price target to $450 from $370.
The revised target represents approximately 21% upside from Tesla’s October 23 closing price of $372.22. The upgrade reflects a more constructive assessment of Tesla’s growth opportunities, including improvements in its core automotive business and progress in autonomous driving.
The analyst also highlighted the possibility of a combination between Tesla and SpaceX. Such a transaction could potentially provide a premium for Tesla shareholders, although the companies have not announced a completed merger.
Tesla’s automotive business is emerging as an important part of the bullish investment case after two consecutive years of declining sales. The business is expected to return to growth in 2026, with further expansion anticipated in 2027. Demand associated with Full Self-Driving (FSD), alongside rising exports from Tesla’s Shanghai factory, could support vehicle sales. Greater software adoption may also create opportunities to generate additional revenue from Tesla’s existing customer base.
Tesla has indicated that its energy business is nearly sold out for 2027, while Barclays sees the potential for shipments to increase by more than 50%.
Tesla’s autonomous-driving ambitions are another key factor behind the improved outlook. Robotaxi activity has reportedly accelerated in recent weeks, raising expectations that Tesla could expand its autonomous ride-hailing operations after a slower initial rollout.
Meanwhile, FSD adoption exceeded 75% among newly purchased Tesla vehicles in North America during the third quarter, according to the analyst’s assessment. The figure highlights the potential for software adoption to become a more significant part of Tesla’s growth strategy.
Tesla stock is testing a crucial resistance zone after recovering from its August low near $310. On the daily chart, TSLA is trading around $372, with premarket prices approaching $380, while a descending trendline continues to cap the recovery. The stock is also testing its moving-average cluster, making the $377–$380 region a key hurdle. A sustained breakout above this zone could open the way toward $400 and potentially $420. On the downside, support lies near $367–$370, followed by $350. A decisive move above the descending trendline would strengthen the bullish technical outlook.
For now, Barclays’ $450 price target offers a bullish scenario for Tesla stock. If the company continues to make progress across its automotive, energy, and autonomous-driving businesses, TSLA could attract further investor interest as the market evaluates its next phase of growth.
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