The Zhitong Finance App learned that on Tuesday, Tesla (TSLA.US) moved high. As of press release, it had risen by about 2.6% and returned to 400 US dollars, with a total market value of close to 1.6 trillion US dollars. Since August, the stock has accumulated a cumulative increase of more than 30%. According to the news, market speculation about a potential merger between Tesla and SpaceX continues to heat up. Musk confirmed in the SpaceX earnings conference call on October 20 that the two sides have set up a special committee to discuss the merger, but have yet to finalize a specific transaction plan.

Barclays raised Tesla's rating to “overrated” and raised the target price from $370 to $450. The core logic is to consider the strategic premium released by the potential merger between Tesla and SpaceX. Barclays believes the two sides may announce the deal before Tesla's December 3 annual shareholders' meeting.

Cathy Wood, founder of ARK Invest (ARK Invest), said that Tesla and SpaceX are leading the US economy to real GDP growth of up to 9%; at the same time, if the two companies merge, it may bring considerable benefits to both shareholders. She pointed out that the growing business overlap between Tesla and SpaceX provides a stronger financial case for the merger.

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