In a groundbreaking revelation, Morgan Stanley’s esteemed analysts, led by the insightful Adam Jonas, have projected a seismic shift in the electric vehicle (EV) landscape. The focal point of their prognostication? Tesla’s cutting-edge supercomputer, Dojo, designed to train AI models for the realm of autonomous vehicles.
Dojo’s potential, as elucidated by Morgan Stanley, is nothing short of awe-inspiring. The EV juggernaut could witness an unprecedented 76% augmentation in its in market capitalization, equating to a monumental $600 billion surge. This intriguing development comes hot on the heels of Tesla’s initiation of Dojo production in July, accompanied by a resolute commitment to allocate over $1 billion towards this endeavor in the coming year.
What renders Dojo truly remarkable is its capacity to unlock fresh, untapped markets, transcending the confines of conventional vehicle sales. Morgan Stanley’s savants ponder the profound question: if Dojo can empower vehicles to ‘see’ and ‘react,’ what other horizons might it unveil? Picture any device at the periphery, adorned with a discerning camera, capable of making real-time decisions based on its visual domain. The possibilities are tantalizing.
This paradigm-shifting revelation led the Wall Street behemoth to revise its stance on Tesla’s stock, elevating it from ‘equal-weight’ to ‘overweight’ and anointing it as their “top pick,” effectively relegating Ferrari’s U.S.-listed shares to the shadows.
In an audacious move, Morgan Stanley revised its 12-18 month target for Tesla’s shares, escalating it by an astounding 60% to a commanding $400. This revision places Tesla at the zenith of Wall Street’s estimations, boasting a market capitalization of approximately $1.39 trillion, dwarfing its current valuation of approximately $789 billion, a feat achieved following Friday’s closure at $248.5.
Adam Jonas, the visionary analyst at Morgan Stanley, perceives Dojo’s most significant value contribution in the sphere of software and services. His revenue projections for Tesla’s network services business have ascended to $335 billion by the year 2040, from a previous estimate of $157 billion. Jonas envisions this division commandeering over 60% of Tesla’s core earnings by 2040, a remarkable twofold increase from its projected 2030 contribution.
The driving forces behind this meteoric ascent encompass the burgeoning prospects associated with third-party fleet licensing and augmented average monthly revenue per user (ARPU). Indeed, the winds of change are sweeping through the EV landscape, with Tesla poised to harness the full potential of Dojo, leading the charge into an electrifying future.
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Source Reuters
