Tesla supercomputer could boost EV maker's market cap by $600 billion
Tesla's supercomputer, Dojo, to train AI models for autonomous cars could give the electric vehicle maker an «asymmetric advantage» and boost its market capitalization by nearly $600 billion, or 76%, Morgan Stanley estimated.
Tesla started production of Dojo in July and plans to spend more than $1 billion 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,» Jonas said.
The Wall Street brokerage upgraded its recommendation on Tesla's stock to «overweight» from «equal-weight» and made it their «top pick,» replacing Ferrari's U.S.-listed shares.
Tesla shares were up nearly 5% at $260.35 in premarket trading.
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 capitalisation of about $1.39 trillion.
That compares with its current market value of about $789 billion, after the stock closed at $248.5 on Friday.
Jonas expects Dojo to drive the most value in software and services.
The analyst raised his
