Tesla's Dojo Supercomputer Could Spark a $500 Billion Jump in Market Value

Sep 15, 202310 mins read

In a recent note, Morgan Stanley analysts have made an astounding prediction – Tesla's Dojo supercomputer might be the catalyst for a remarkable $500 billion increase in the electric vehicle manufacturer's market value. This prediction has ignited considerable enthusiasm among investors and Tesla enthusiasts.

Dojo Supercomputer: Unleashing New Potential


Dojo is not your average supercomputer; it's an in-house project at Tesla that has been in development for nearly five years. Its primary purpose is to train AI systems, enabling them to perform complex tasks. These tasks range from assisting Tesla's driver-assistance system Autopilot to powering the company's ambitious "Full Self-Driving" (FSD) initiatives.

The Impact of Dojo on Tesla's Market Value


Morgan Stanley's analysts, led by the esteemed Tesla analyst Adam Jonas, believe that Dojo could create a massive surge in Tesla's market value. This bullish outlook has already propelled Tesla's stock price upwards by over 6% in early trading.

The driving force behind this market value surge lies in the potential for Dojo to unlock new revenue streams for Tesla. This includes a broader adoption of robotaxis and software services. The analysts draw parallels to Amazon Web Services, which significantly contributed to Amazon's profitability.

Tesla: An Auto and Tech Company


Tesla's identity has been a subject of debate for years—is it primarily an auto company or a tech company? According to Morgan Stanley's note, it's both. However, the analysts emphasize that the most substantial value driver moving forward is likely to be software and services revenue rather than vehicle sales.

Expanding into New Markets


Dojo's capabilities extend beyond improving vehicle performance. It has the potential to open up entirely new markets for Tesla. These markets are expected to go beyond traditional vehicle sales, offering services that can revolutionize the automotive industry.

Upcoming Milestones to Watch


Two key milestones are on the horizon that investors should closely monitor:

1. The Next FSD System: Tesla is expected to unveil the latest version of its Full Self-Driving system by the end of the year. This release is eagerly anticipated and could have a significant impact on Tesla's market position.

2. Tesla's Next AI Day: While the exact date is yet to be announced, Tesla typically hosts AI days to showcase its advancements in artificial intelligence. The next AI day, expected in early 2024, could provide valuable insights into Tesla's vision and technological progress.

Closing Thoughts


While Tesla's stock price has already seen substantial growth in recent years, Morgan Stanley's prediction suggests that the company's most remarkable gains may still be ahead. Tesla's evolution into a software and services-driven company, backed by the immense computational power of Dojo, holds the potential to redefine the automotive industry and drive its market value to new heights.

As Tesla continues to push the boundaries of innovation and technology, investors and enthusiasts alike eagerly await the next chapters in the company's journey—chapters that may be defined by advancements in AI, self-driving capabilities, and transformative software and services.

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