Daiwa Lifts Tesla Target to $390 on SpaceX Merger Potential, Keeps Neutral Rating
Daiwa Capital Markets raised its Tesla price target to $390 from $345 and kept its Neutral rating. Its report, detailed by Sina Finance on Nov. 2, says the higher target mainly reflects the possibility of a merger with SpaceX. Daiwa also raised its earnings estimates.
By the Tesla News Wire staff · Edited by Seamus McKenna · · 2 min read
Daiwa Capital Markets raised its Tesla price target to $390 from $345 and kept its Neutral rating. The change first appeared on market wires on Oct. 27. Sina Finance published details of the report on Nov. 2.
What changed
EPS estimates: 2026 raised to $1.70 from $1.40, and 2027 to $2.05 from $1.90, reflecting stronger car sales and energy storage through 2027.
Daiwa says the higher target mainly reflects the possibility of a merger with SpaceX.
It expects 2027 revenue to grow 15%, with automotive up 7% and non-automotive up 34%.
Daiwa's view of the quarter
Daiwa wrote that Tesla's third quarter showed car demand stabilising and solid FSD take-up. It said 50 GWh of new Megapack capacity should help Tesla sell to hyperscale data-centre customers moving to 800V DC power. It said a third-quarter gross-margin beat was driven by about $450 million in tariff refunds, worth about 150 basis points of margin and $0.12 of EPS.
Why still Neutral
Daiwa called Tesla's goal of meaningful robotaxi revenue in the second half of 2027 optimistic. It does not expect Optimus to bring in revenue before 2028, and it kept the Neutral rating because of the slower robotaxi rollout and cash burn.
For information only, not investment advice. Price targets and estimates are attributed to the named firms and data providers.
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