Analysts at Morgan Stanley recently predicted that Tesla’s Dojo supercomputer could spark a $500 billion surge in the market value of the electric car manufacturer. This forecast prompted shares in Tesla to swell by over 6% in early trading on Monday. Morgan Stanley analysts, under the steadfast leadership of veteran Tesla analyst Adam Jonas, speculated that such a dramatic increase in value could stem from Dojo’s potential to initiate new sources of revenue, primarily via the broader incorporation of robotaxis and software services.
The team of analysts drew parallels between Dojo’s potential at Tesla and the driving forces behind the stratospheric rise in profitability experienced by Amazon Web Services at Amazon. The note read, “Investors have long debated whether Tesla is an auto company or a tech company. We believe it’s both, but see the biggest value driver from here being software and services revenue.”
Tesla’s Dojo is no ordinary supercomputer. For five years the tech giant has been laboring to develop this in-house marvel, which is uniquely equipped to train AI systems to tackle sophisticated tasks. Key among these tasks is lending support to Tesla’s driver-assistance system Autopilot and furthering its ambitious “Full Self-Driving” initiatives.
Morgan Stanley’s analysts are convinced that Dojo presents an opportunity to breach “new addressable markets that extend well beyond selling vehicles at a fixed price.” It has been insinuated that the upcoming latest version of Tesla’s full self-driving system, due to be unveiled at year’s end, as well as Tesla’s next AI day, forecast for early 2024 though yet to be formally announced, are noteworthy events on the horizon.
While Tesla shares have doubled since the year’s commencement, they remain significantly below the record intraday peak of $414.50 attained in November 2021. The world’s most valuable carmaker boasted a market cap of approximately $788.74 billion at the close of the market the previous Friday.
