Tesla Stock Seen Trading With Evolving Views on Potential SpaceX Merger, UBS Says

02:55 PM EDT, 10/22/2026 (MT Newswires) -- Tesla (TSLA) stock will likely trade mainly with evolving views on a potential SpaceX (SPCX) combination, even as stronger Full Self-Driving uptake and energy demand add higher-margin revenue, UBS said in a note Thursday. The firm said 75% of North American deliveries in Q3 included FSD, up 20 percentage points from the prior quarter, while Tesla's 2027 Megapack capacity is nearly sold out on data center demand. UBS said investor focus is on a possible merger after Elon Musk said both companies have formed special committees to discuss the idea. Musk called it a "good idea" but said treating it as certain would be "overstating it," according to the note. UBS raised its 2027 and 2028 EPS estimates to $2.02 and $3.17 from $1.80 and $2.92 for Tesla. The firm kept the company's neutral rating and lifted its price target to $425 from $391. Price: 376.46, Change: -10.02, Percent Change: -2.59