More than just a SpaceX (SPCX.US) merger! Barclays: Tesla, Inc. (TSLA.US) has multiple upside catalysts, with a price target of US$450

The market generally believes that if Tesla, Inc. (TSLA.US) and SpaceX (SPCX.US) reach a merger, it could push Tesla, Inc.'s share price higher, but Barclays' Dan Levy believes that the automaker's own business prospects also contain upside momentum, which prompted the institution to upgrade Tesla, Inc.'s stock rating from "Neutral" to "Overweight." Levy wrote: "We believe the narrative around Tesla, Inc. stock should not revolve only around a potential merger... We believe the company's recent earnings conference call released several key signals that can also support a stronger share price." Levy believes the core business is expected to resume growth this year after two years of decline, and 2027 should see further upside, supported by demand for Full Self-Driving and export growth from its Shanghai Gigafactory. In addition, Tesla, Inc. noted that, given strong data center demand, its energy business is almost sold out for 2027. Levy expects energy deliveries to grow by more than 50%. Tesla, Inc. CFO Vaibhav Taneja said on the company's October 21 earnings conference call with analysts: "We achieved 13.7 GWh of energy storage deployments in our second-best deployment quarter, with energy gross margin rising from 20.4% to 33.1%." The Robotaxi business is also gaining momentum, raising expectations that Tesla, Inc. can compete more directly with Waymo in the autonomous ride-hailing space. Levy wrote in a note to clients: "We believe that improvements in Tesla, Inc.'s core business, combined with a Robotaxi inflection point, plus the premium that a merger with SpaceX could bring, provide attractive risk-reward for the stock." The opportunity for further upside in Tesla, Inc.'s share price led to a new US$450 price target, raised 22% from the previous target. As of Monday's close, Tesla, Inc.'s share price surged more than 5%, breaking above its 200-day moving average and pushing the stock to its highest level since July.