Tesla Stock Jumps 5.6% as Barclays Upgrade Caps a Week of Mixed Signals
Published on 10/26/2026 at 15:33 | Editorial boerse-global.de
Shares of Tesla climbed 5.6% on Thursday after Barclays lifted its rating on the electric-vehicle maker from "Equalweight" to "Overweight" and raised its price target from $370 to $450. According to Reuters, the fresh recommendation was the immediate catalyst behind the move.
The upgrade lands just a day after Tesla's third-quarter 2026 earnings report, which painted a more complicated picture. Net income came in at $787 million, down 44% from the year-earlier period, translating to earnings of $0.22 per share. On an adjusted basis, Tesla reported $0.48 per share. Revenue reached roughly $28 billion, falling slightly short of analyst expectations, as AP reported. Free cash flow totaled $1.5 billion.
Capex Cut and a Four-Year Order Backlog
Alongside the quarterly figures released Wednesday, Tesla trimmed its full-year 2026 capital expenditure estimate to $20 billion from the $25 billion previously budgeted. The company also reported its highest passenger-vehicle order backlog in four years, and confirmed that Optimus production has begun in Fremont.
JPMorgan, for its part, raised its price target on Thursday from $415 to $430 while keeping its "Neutral" rating. Media reports indicated the bank viewed the quarterly results as mildly positive, though it flagged higher spending and the pace of Tesla's investments.
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Board Committees Weigh a SpaceX Combination
Separately, Elon Musk said during Tuesday's SpaceX earnings call, according to Axios, that both companies have formed committees of independent board members to evaluate a potential transaction. Musk stressed that no deal is assured and that any combination would require the approval of Tesla shareholders.
Tesla confirmed in a regulatory filing that a committee of disinterested directors is examining a deepening of ties with SpaceX, which could include a merger. CLSA cited sentiment surrounding the possible combination when it upgraded Tesla on Thursday from "Underperform" to "Hold" and lifted its price target from $310 to $400, according to media reports — though the brokerage acknowledged such a transaction is far from certain.
Court Ruling and a December Shareholder Vote
In litigation over Tesla's driver-assistance systems, the Ninth Circuit Court of Appeals on October 16 vacated a decision granting class certification. The court sent the consumer case back to the relevant district court for further proceedings. The suit is therefore not resolved; the ruling concerned only its status as a class action.
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Tesla filed its definitive proxy materials for this year's annual meeting on October 19. The gathering is scheduled for December 3, 2026, where Elon Musk, Robyn Denholm and JB Straubel are among those standing for re-election to the board, Reuters reported.
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