On Tuesday, Tesla stocks soared after an optimistic Morgan Stanley about the automaker’s Dojo supercomputer.
Its price per share jumped by 10.09% to $273.58 on September 12. Likewise, market watchers anticipate it to reach up to $274.85 apiece before the markets close for the day.
Tesla gained $79.90 billion to reach a market cap of $857.25 billion, overtaking Berkshire Hathaway. The electric vehicle (EV) maker currently has a year-to-date (YTD) return of 101.74%, ranking it third in the S&P 500.
Moreover, its development of Dojo will benefit from the momentum ChatGPT generated upon its release in May this year. The team estimates that the carmaker could grow by $500.00 billion by 2040, making it the sixth trillion-dollar company.
TSLA specifically designed the Dojo AI to improve the image and video processing capabilities of its EVs. Furthermore, the company has announced plans to invest over $1.00 billion in developing the supercomputer next year.
In addition, Tesla hopes to leverage the supercomputer to become a power player in the lucrative software-as-a-service market. Team Jonas believes that TSLA even has the potential to rival Nvidia in the booming generative AI market.
Also, Morgan Stanley analyst Adam Jonas and his team predict that Dojo will be the core of the Muskonomy. Additionally, they increased their price target for the TSLA stock to $400.00 apiece.
Dojo to Open the Flood Gates for Tesla Expansion
Jonas argues that Dojo opens the way for Tesla to get into the business of selling AI technology to competitors. Other automakers will save money by using AI to operate their own GPUs instead of buying new chips from Nvidia.
The Morgan Stanley team believes that Dojo has the potential to take TSLA beyond the boundaries of the auto industry. Vision-based AI models will play a pivotal role in the future of various industries such as robotics, healthcare, and security.
Furthermore, the team expects Tesla to generate $2,160.00 average monthly subscription revenue per EV owner in 2030. This subscription service will include self-driving systems, EV charging services, system maintenance, software upgrades, and more.
