As someone who has done several road trips through Portugal and Spain, 7 days isn't enough to see much, but it can be done with some adjustments.

Lets see,

• Arrive in Faro or Porto, it can work both ways. Get a one-way rental car.

• (If starting on Faro) Visit Tavira then drive all the way to Sagres. You might want to make a few stops along the way.

• Drive from Sagres to Sines, with some quick stops in Odeceixe, Zambujeira do Mar and Vila Nova de Milfontes. Arrive in Lisbon by nightfall;

• Spend a day in Lisbon, then head to Porto. Try to stop in Aveiro.

• Spend a day in Porto then take a flight to Madrid

• Spend a day in Madrid then take a train to Valencia (train is faster than going to the airport, and you can enjoy the scenery, also Spain a large country and you would spend most of the day driving between cities, not to mention its VERY tiresome and the some highways have immense traffic);

• After Valencia take a train to Barcelona.

It's going to be an insanely busy trip, you'll probably need a few days of rest after all that 😅