Tesla Dojo supercomputer to boost market value by $600b

LONDON, Sept 11 (Reuters): Tesla's Dojo supercomputer could power a near $600 billion jump in the automaker's market value by boosting the adoption of robotaxis and its software services, Morgan Stanley analysts said.
The electric-vehicle maker (EV) started production of the supercomputer used to train artificial intelligence (AI) models for self-driving cars in July and plans to spend more than $1 billion on Dojo through next year.
Dojo can open up new addressable markets that "extend well beyond selling vehicles at a fixed price," Morgan Stanley analysts, led by Adam Jonas, said in a note on Sunday.
"If Dojo can help make cars 'see' and 'react,' what other markets could open up? Think of any device at the edge with a camera that makes real-time decisions based on its visual field."
The Wall Street brokerage upgraded its recommendation on Tesla's stock to "Overweight" from "Equal-weight" and made it their "top pick," replacing Ferrari's US-listed shares.
Tesla shares were up nearly 5.7 per cent at $262.63 in premarket trading.
Morgan Stanley raised its 12-18 month target on Tesla's shares by 60 per cent to $400 - the highest among Wall Street brokerages as per LSEG data - which, it estimated, would give the EV maker a market capitalization of about $1.39 trillion.
That compares with its current market value of about $789 billion, after the stock closed at $248.5 on Friday.
Jonas expects Dojo to drive the most value in software and services.
Morgan Stanley raised its revenue estimate from Tesla's network services business to $335 billion in 2040, from $157 billion earlier.