Jefferies Raises Tesla Price Target to $400, Flags Potential SpaceX Merger Premium

According to Jefferies, Tesla's (TSLA) price target was raised to $400 from $375 on July 13 overnight trading, maintaining a Hold rating. The brokerage cited the company's "significant auto volume beat" with 480,100 vehicles delivered in Q2, surpassing consensus of 406,000. Q2 EBIT was raised to $1.45 billion (5.1% margin), though Jefferies still expects free cash flow outflows of approximately $7.5 billion. The firm also highlighted that a Tesla-SpaceX merger could leave room for a shareholder premium, with Musk retaining an estimated 55.3% voting control in a nil-premium deal structure.

Separately, Tesla Semi is entering a pilot program with Wisconsin-based Paper Transport, testing the truck in Chicago operations with about 500 miles of range at colder temperatures.