With Dojo and custom AI chips leading the way, Tesla’s venture into the world of AI-powered mobility promises to be a captivating and transformative journey.Tesla’s Dojo supercomputer may add as much as $US500 billion ($775 billion) to the company’s market value through faster adoption of robotaxis and network services, according to Morgan Stanley.ĭojo can open up “new addressable markets,” just like AWS did for Amazon, analysts led by Adam Jonas wrote in a note, upgrading the stock to overweight from equal-weight and raising its 12-month price target to a Street-high $US400 a share from $US250. Read the article at CryptoPolitanĪs Tesla continues to push the boundaries of AI technology and expand its influence beyond traditional automotive markets, investors and industry observers will be keenly monitoring its progress. With Dojo and custom AI chips leading the way, Tesla’s venture into the world of AI-powered mobility promises to be a captivating and transformative journey. Still, the company’s success is closely tied to its capacity to leverage AI to open new markets and revenue streams.Īs Tesla continues to push the boundaries of AI technology and expand its influence beyond traditional automotive markets, investors and industry observers will be keenly monitoring its progress. The debate over whether Tesla primarily operates in the automotive or tech domain continues. With its innovative Dojo system and custom AI chip, Tesla seeks to redefine the future of autonomous driving and network services. Morgan Stanley’s upgraded outlook on Tesla highlights the company’s transformative potential in the AI and software sector. Discussions are ongoing regarding potential extensions of cooperation beyond charging stations into full self-driving (FSD) licensing and operating system licensing. With increased computing capabilities and faster processing speeds, Tesla aims to expedite the monetization of vehicle software, offering higher recurring revenue rates.įurthermore, the integration of non-Tesla fleet licensing revenue into their Network Services model is anticipated. Tesla has been actively pursuing supercharging partnerships, including one with Hilton Hotels, as a potential source of revenue beyond the conventional automotive sphere. Diversifying revenue streams supercharging network Tesla’s highly skilled semiconductor team has engineered a custom AI ASIC chip designed for more efficient and cost-effective processing of vision-based data for autonomous driving compared to leading AI-purpose chips in the market, including Nvidia’s A100s and H100s. Nevertheless, Jonas highlights Tesla’s ambition to develop an in-house system with superior efficiency. Tesla’s reliance on Nvidia for its chips has been a concern. This synergy streamlines time-to-market and expands the potential customer base for Tesla’s offerings. It achieves this by expediting the adoption rate of mobility solutions, particularly in robotaxis and network services.ĭojo, as Jonas explains, unlocks Tesla’s dual-wheel momentum by seamlessly integrating and accelerating the alliance between Tesla’s core automotive operations and its software-as-a-service (SaaS) ventures. According to Jonas, Dojo can potentially bolster Tesla’s enterprise value by a substantial $500 billion. This system plays a pivotal role in training Tesla’s autonomous driving model. Jonas, who previously downgraded Tesla during a stock surge, now underscores the significance of Tesla’s custom supercomputing system, Dojo. Jonas suggests that Tesla can tap into new markets beyond traditional vehicle sales, drawing parallels with Amazon Web Services (AWS), which contributes a substantial 70% to Amazon’s total earnings before interest and taxes (EBIT). While the core of Tesla’s operations remains the production of electric vehicles, Jonas emphasizes the company’s burgeoning software and services segment. Jonas provides a clear perspective, asserting that Tesla falls into both categories. The debate over whether Tesla is primarily an automotive or technology company has long intrigued investors. Tesla’s strategic focus on artificial intelligence (AI) is the driving force behind this optimistic outlook. In his recent research report titled “Unlocking Tesla’s AI Potential,” Jonas upgraded the electric vehicle (EV) manufacturer’s stock from “Equal Weight” to “Overweight” while raising the price target from $250 to $400. Tesla stock experienced a substantial increase, exceeding 6%, following a positive assessment from Morgan Stanley analyst Adam Jonas.
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