Tesla’s Dojo Supercomputer Could Boost Market Cap by $600 Billion

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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.


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