Tesla's Stock Soars After Top Analysts Make Bold Prediction About Company's Next Big Product
Tesla shares soared after Morgan Stanley analysts released an optimistic note today that predicted the potential for huge windfall profits from the company's next innovation.
According to the release, the company's Dojo supercomputer project could fuel a $500 billion growth in market value through new revenue streams for products like robotic taxis and other software services. This is similar to how Amazon Web Services has been a profit driver for Amazon.
BREAKING: Morgan Stanley's Adam Jonas has increased his $TSLA price target by 60% to $400 per share (from $250), and upgraded his rating to Overweight (from Equal-Weight). $TSLA is now their "Top Pick"
"We believe that Dojo can add up to $500B to @Tesla's enterprise value,… pic.twitter.com/TY3JxDzUvd— Sawyer Merritt (@SawyerMerritt) September 10, 2023
“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,” the note reads.
Tesla has been developing the Dojo supercomputer to train its Full Self-Driving (FSD) system, its Autopilot feature, and other complex AI-driven tasks. As analysts see it, the project could yield profits outside of vehicle sales with "new addressable markets that extend well beyond selling vehicles at a fixed price.”
Tesla is currently worth about $788.74 billion, down from a peak of over $1.2 trillion in late 2021 but up significantly from the start of the year. It's the world's most valuable automaker and the seventh most valuable company by market cap. It saw a 30 percent increase in vehicle sales in the first half of 2023, with electric sales that far outpace those of any other automaker.
