Tesla shares jump on prediction supercomputer unit could add $600 billion to market value
Tesla, already the world's most valuable automaker, started production of the supercomputer to train artificial intelligence (AI) models for self-driving cars in July and plans to spend more than $1 billion on Dojo through next year.
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«If Dojo can help make cars 'see' and 'react,' what other markets could open up? Think of any device at the edge with a camera that makes real-time decisions based on its visual field.»
The Wall Street brokerage upgraded Tesla's stock to «overweight» from «equal-weight» and made it their «top pick,» replacing Ferrari's U.S.-listed shares.
Morgan Stanley raised its 12-18 month target on Tesla's shares by 60% to $400 — the highest among Wall Street brokerages, as per LSEG data — which, it estimated, would give the EV maker a market capitalization of about $1.39 trillion.
That's about 76% higher than Tesla's market value of about $789 billion, based on the stock's close of $248.5 on Friday. The stock climbed about 6% to $264 before the bell on Monday.
Jonas expects Dojo to drive the most value in software and services.
Morgan Stanley raised its revenue estimate from Tesla's network services business to $335 billion in 2040, from $157 billion earlier.
Jonas expects the unit to
