Tesla’s Dojo Supercomputer: Key to $500B Market Value Boost
Tesla Inc. saw a significant surge in its shares on Monday, with the stock increasing over 10 percent in regular trading. The boost came after analysts at Morgan Stanley revealed that the company’s Dojo supercomputer could potentially add a staggering $500 billion to Tesla’s market value.
According to Morgan Stanley, the Dojo supercomputer has the potential to unlock new revenue streams through wider adoption of robotaxis and software services. The analysts believe that Dojo will enable Tesla to tap into new addressable markets that extend well beyond the traditional model of selling vehicles at a fixed price.
In a note to investors, Morgan Stanley stated, 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 in-house Dojo supercomputer is specifically designed to train artificial intelligence (AI) systems to complete complex tasks. It plays a crucial role in assisting Tesla’s driver-assistance system, Autopilot, as well as propelling the company’s Full Self-Driving efforts.
The analysts at Morgan Stanley compare the potential impact of Dojo at Tesla to the forces that have driven Amazon Web Services to significantly boost Amazon’s profitability. They also highlight the upcoming release of Tesla’s latest version of its full self-driving system and the company’s next AI Day as events worth watching.
In July, Tesla announced that it had commenced production of its Dojo supercomputer to train its fleet of autonomous vehicles. The completion and utilization of Dojo could mark a major milestone for Tesla in further establishing itself as a leader in the electric vehicle and AI industries.
Following the news, Tesla’s shares closed at $273.58 on the Nasdaq, reflecting a 10.09 percent increase. However, in pre-market activity, the shares experienced a slight dip of 0.8 percent, trading at $271.45.
The integration of the Dojo supercomputer into Tesla’s operations could have far-reaching implications for the company. By leveraging the power of AI and advanced computing capabilities, Tesla could revolutionize not only the automotive industry but also various sectors dependent on autonomous technology.
As Tesla continues to push the boundaries of innovation and solidify its position as a pioneer in the field, investors and industry experts eagerly await the unveiling of the latest advancements in self-driving technology and the potential impact on Tesla’s market value. The future looks promising for Tesla as it paves the way for a new era of AI-driven transportation.
