Tesla’s Market Cap Set to Skyrocket with Introduction of Dojo Supercomputer, Morgan Stanley Predicts

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Tesla’s Market Cap Set to Soar with Introduction of Dojo Supercomputer, Says Morgan Stanley

In a recent analysis conducted by Morgan Stanley, experts are predicting a monumental increase in Tesla’s market capitalization. This surge is expected to be driven primarily by the introduction of the Dojo supercomputer, as well as the company’s focus on robotaxis and software services.

Tesla launched the production phase of the Dojo supercomputer in July, with the goal of using it to train artificial intelligence (AI) models for the development of autonomous vehicles. This cutting-edge technology represents a significant investment for Tesla, with over $1 billion allocated to the Dojo project in the coming year.

According to Adam Jonas, a researcher at Morgan Stanley, the potential reach of Dojo extends well beyond the automotive industry. He speculates that if the supercomputer can help cars see and react, it opens up a wide range of possibilities for other markets. For example, devices equipped with cameras could make real-time determinations based on visual inputs, revolutionizing numerous industries.

As a result of this exciting development, Morgan Stanley has upgraded its rating of Tesla stocks from Equal-weight to Overweight, and has named it their top pick. This new rating replaces the previous distinction bestowed upon U.S.-listed shares of Ferrari.

The positive news has caused Tesla’s shares to show an upward trend, increasing nearly 5.7% to $262.63 before the market opened. Morgan Stanley’s endorsement has also led to a significant increase in the 12-18 month target price for Tesla’s shares, now positioned at $400. According to data from LSEG, this valuation would push Tesla’s market cap to an estimated $1.39 trillion, a considerable leap from its current valuation of $789 billion.

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Adam Jonas remains optimistic about the Dojo project, believing it will be a cornerstone in driving value, particularly in the software and services segment. Morgan Stanley has revised its revenue predictions for Tesla’s network services sector, estimating it to reach $335 billion by 2040, compared to the previous projection of $157 billion. Jonas predicts that by 2040, this unit will account for over 60% of Tesla’s core earnings, nearly double the projection for 2030.

Tesla continues to outpace traditional U.S. automakers like Ford and General Motors in terms of its financial performance. It currently boasts a 12-month forward price-to-earnings ratio of 57.9, while Ford and General Motors stand at 6.31 and 4.56, respectively.

The introduction of the Dojo supercomputer is undoubtedly a significant development for Tesla, with the potential to revolutionize not only the automotive industry but also various other sectors. With the backing of Morgan Stanley and the projected increase in market capitalization, Tesla’s future looks brighter than ever. Investors and enthusiasts alike eagerly await the impact of the Dojo supercomputer and its role in shaping Tesla’s success.

Frequently Asked Questions (FAQs) Related to the Above News

What is the Dojo supercomputer?

The Dojo supercomputer is a cutting-edge technology developed by Tesla. It is designed to train artificial intelligence (AI) models for the development of autonomous vehicles.

How much has Tesla invested in the Dojo project?

Tesla has allocated over $1 billion to the Dojo project in the coming year, highlighting the significant investment the company has made in this advanced supercomputer.

What are the potential applications of Dojo beyond the automotive industry?

According to Adam Jonas, a researcher at Morgan Stanley, Dojo's capabilities extend beyond the automotive industry. It has the potential to revolutionize various sectors by enabling devices equipped with cameras to make real-time determinations based on visual inputs.

What impact has the introduction of the Dojo supercomputer had on Tesla's market capitalization?

Experts at Morgan Stanley predict a monumental increase in Tesla's market capitalization due to the introduction of the Dojo supercomputer. The projected increase in market capitalization is expected to be substantial, pushing it to an estimated $1.39 trillion.

What is Morgan Stanley's stance on Tesla stocks following the introduction of Dojo?

Morgan Stanley has upgraded its rating of Tesla stocks from Equal-weight to Overweight and named it their top pick. This positive endorsement has led to a significant increase in Tesla's target price and reflects the high expectations for the company's future success.

How has the market reacted to the news about Tesla's increase in market capitalization?

Tesla's shares have shown an upward trend, increasing nearly 5.7% before the market opened. This positive news, along with Morgan Stanley's endorsement, has sparked investor optimism and enthusiasm for Tesla's future prospects.

What are the revenue predictions for Tesla's network services sector?

Morgan Stanley has revised its revenue predictions for Tesla's network services sector, estimating it to reach $335 billion by 2040, compared to the previous projection of $157 billion. This indicates the significant growth potential in the software and services segment for Tesla.

How does Tesla's financial performance compare to traditional U.S. automakers?

Tesla continues to outpace traditional U.S. automakers like Ford and General Motors in terms of its financial performance. It currently boasts a higher 12-month forward price-to-earnings ratio, indicating stronger investor confidence in its future prospects.

What role does Morgan Stanley envision for the Dojo supercomputer in Tesla's success?

Adam Jonas, a researcher at Morgan Stanley, believes the Dojo supercomputer will be a cornerstone in driving value, particularly in the software and services segment. He predicts that by 2040, Tesla's network services unit will account for over 60% of the company's core earnings.

How is the introduction of the Dojo supercomputer expected to shape Tesla's future?

The introduction of the Dojo supercomputer is expected to revolutionize not only the automotive industry but also various other sectors. With the backing of Morgan Stanley and the projected increase in market capitalization, Tesla's future looks brighter than ever, and both investors and enthusiasts eagerly anticipate the impact of Dojo on Tesla's success.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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