Tesla’s supercomputer could boost EV maker’s market cap by $600 bln -Morgan Stanley. Morgan Stanley projected that Tesla’s (TSLA.O) supercomputer, Dojo, could offer it an “asymmetric advantage” and enhance its market valuation by about $600 billion, or 76%.
Tesla began Dojo production in July and aims to spend over $1 billion next year.
Dojo may offer new addressable markets that “extend well beyond selling vehicles at a fixed price,” Morgan Stanley analysts headed by Adam Jonas said on Sunday.
Dojo can help cars ‘see’ and ‘ react,’ but what other markets may open? Jonas said any edge gadget has a camera that makes real-time visual judgments.
The Wall Street company boosted Tesla’s stock to “overweight” from “equal-weight” and named it their “top pick,” displacing Ferrari’s U.S.-listed shares.
Morgan Stanley boosted its 12- to 18-month target on Tesla’s shares by 60% to $400, the biggest among Wall Street brokerages according to LSEG data, valuing the EV manufacturer at $1.39 trillion.
Today, the stock trades for $789 billion after closing at $248.5 on Friday.
Jonas expects Dojo to maximize software and service value.
The analyst estimated Tesla’s network services revenue at $335 billion in 2040, up from $157 billion.
Jonas anticipates the segment will contribute to over 60% of Tesla’s core profits by 2040, roughly tripling from 2030.
“This increase is largely driven by the emerging opportunity we see in 3rd party fleet licensing, increased ARPU,” Jonas added.
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