Morgan Stanley analyst Adam Jonas envisions Tesla Inc‘s (NASDAQ:TSLA) custom supercomputer, Dojo, as a game-changer that could unlock new markets for the electric vehicle (EV) giant and catapult its enterprise value by a staggering $500 billion.
Analyst’s Positive Outlook: Jonas has upgraded his rating on Tesla from ‘equal-weight’ to ‘overweight,’ boosting the price target by 60% to $400, the highest right now among Wall Street analysts.
The Tesla Thesis: His optimism centers around the belief that Dojo has the potential to add a remarkable $500 billion to Tesla’s enterprise value, primarily driven by a faster adoption rate in mobility and network services.
Dojo, initially designed by Tesla to process video data from its extensive fleet of vehicles and enhance autonomous driving capabilities, could extend its applications beyond the automotive industry.
“The more we looked at Dojo, the more we realized the potential for underappreciated value in the stock. Like many other large-cap tech stocks on your screen, we believe Tesla can reasonably test its all-time highs of $400 over the next 12 months,” Jonas said.
Jonas envisions potential applications in robotics, ...