Morgan Stanley predicts Tesla’s Dojo supercomputer could add $500 billion to market value

Tesla’s Dojo supercomputer could become a game-changer for the company, potentially adding as much as $500 billion to their market value, according to Morgan Stanley. This prediction is rooted in the belief that Dojo’s capabilities will accelerate the adoption of robotaxis and network services.

In a research note, analysts, including Adam Jonas and Daniela M. Haigian, made a compelling case for Tesla’s future prospects, comparing Dojo’s impact to what Amazon Web Services (AWS) did for Dojo, designed to handle vast amounts of data for training autonomous driving systems, positions Tesla at an “asymmetric advantage” in a market potentially valued at $10 trillion, according to the analysts.

They believe that software and services will become the primary value driver for Tesla moving forward.

The analysts upgraded Tesla’s stock from “equal-weight” to “overweight” and raised their 12-month price target to a Street-high $400 per share, up from the previous $250.

This assessment comes in the wake of Tesla’s already impressive performance, with the stock more than doubling in value this year, closing at $248.50 on Friday.

Tesla has been touting Dojo’s capabilities in AI and self-driving technology since 2021, with CEO Elon Musk announcing plans to invest over $1 billion in the project by the end of 2024. If Morgan Stanley’s base-case target is realized, Tesla’s stock would approach its all-time high of $409.97 achieved in November 2021. This projection places Morgan Stanley in the minority, as the average price target among analysts tracked by Bloomberg stands at $268.42.

You can read the full research note below.

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