Tesla shares continue higher after Barclays upgrade

Tesla Inc shares rose 2.8% in morning trading on Tuesday, continuing gains from the previous session following a Barclays upgrade.

Barclays analyst Dan Levy raised Tesla to Overweight from Equal Weight and lifted the price target to $450 from $370. The analyst pointed to several factors supporting the upgrade, including a possible strategic combination with SpaceX, improvements in Tesla's automotive operations, and progress in the company's robotaxi program. Both Tesla and SpaceX have established special committees to explore a potential combination.

The Barclays upgrade follows similar moves by other firms. BNP Paribas and CLSA removed negative ratings on Tesla last week. Analyst bearishness on the stock has dropped to its lowest level in approximately 11 years, with sell-rated analysts now making up a small portion of total coverage.

Tesla received regulatory approval for its Full Self-Driving software in Latvia, marking the tenth European Union member state to authorize the technology. The company's management has identified Full Self-Driving as a primary factor driving vehicle demand. More than 75% of new North American buyers now subscribe to the service.

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