Tesla’s Dojo Supercomputer Could Boost Market Cap by $600 Billion
Tesla’s Dojo supercomputer, which is designed to train artificial intelligence (AI) models for autonomous driving, could give the electric vehicle maker a significant advantage over its rivals and boost its market capitalization by nearly $600 billion, according to Morgan Stanley.
The investment bank estimates that Dojo could help Tesla open up new addressable markets, such as the development of self-driving trucks and the sale of software and services to other automakers.
Morgan Stanley has upgraded its recommendation on Tesla’s stock to “overweight” from “equal-weight” and made it its “top pick,” with a price target of $400. This would give Tesla a market capitalization of about $1.39 trillion.
The bank’s analysts believe that Dojo could help Tesla generate $335 billion in revenue from its network services business by 2040, up from $157 billion previously. They expect the unit to account for more than 60% of Tesla’s core earnings by 2040.
“This increase is largely driven by the emerging opportunity we see in 3rd party fleet licensing, increased ARPU (average monthly revenue per user),” the analysts said.
Tesla CEO Elon Musk has said that Dojo will be “100 times” faster than any other supercomputer and will help the company achieve its goal of full self-driving by the end of 2023.
The Dojo supercomputer is still under development, but it has the potential to be a major game-changer for Tesla and the automotive industry as a whole.
Related News
- 21 Sep
Chipmaker Kokusai Electric to list on Tokyo Stock Exchange on Oct. 25
Kokusai Electric, a chipmaking equipment maker, plans to list on the Tokyo Stock Exchange on October 25 in what is expected to be the largest IPO in Japan in five years. The company, which was spun off from Hitachi in 2018 and is now owned by the private equity firm KKR, has set a tentative IPO price of 1,890 yen per share and is expected to raise around 210 billion yen ($1.4 billion) in the IPO. A successful IPO for Kokusai Electric could lead to a wave of new listings in Japan and boost the market's appetite for chipmaking stocks. However, investors should be aware of the risks associated with investing in IPOs.
- 20 Sep
Shell opens world’s largest EV charging station in China
Shell has opened the world's largest EV charging station in Shenzhen, China. The station has 258 charging points and solar panels that can generate 300,000 kilowatt-hours of renewable electricity per year. The station is a joint venture between Shell and Chinese EV giant BYD.
- 18 Sep
Taiwanese Military Detects Record Number of Chinese Warplanes
Taiwan detected a record number of Chinese warplanes around the island in one day, with 40 crossing the median line of the Taiwan Strait. The Taiwanese military condemned China's "continued military harassment" and warned that it could lead to a sharp spike in tension and worsen regional security. The United States has been increasing its military presence in the region in a bid to deter China from taking any aggressive action against Taiwan.
- 18 Sep
Indian-American Presidential Candidate Vivek Ramaswamy Refutes Age Criticism
Vivek Ramaswamy, a 38-year-old Indian-American candidate for President of the United States, has refuted criticism that he is too young for the office. He pointed out that Thomas Jefferson was only 33 years old when he wrote the Declaration of Independence, and argued that the United States needs a leader who is "not afraid to revive the country's founding principles." Ramaswamy is facing an uphill battle in the Republican primary, but he is hoping that his message will resonate with voters.
- 16 Sep
Pakistan: Petrol, HSD Prices Reach Historic Highs
Pakistan's caretaker government has hiked petrol and diesel prices to over Rs 330 per litre, the highest ever in the country's history. The move comes as the country struggles with double-digit inflation and is under pressure from the IMF to raise taxes and reduce subsidies. The hike will put an unbearable burden on the masses and make it difficult for many people to make ends meet.
Leave a Reply