In the past, many analysts were satisfied with the word “Tesla“to get investors to buy stocks. Now it has to be the combination of “Tesla” and “Artificial intelligence“to fuel demand for the already highly valued US automaker.
And it is precisely this combination that the US investment bank Morgan Stanley is relying on. Although Tesla’s supercomputer “Dojo”, which was announced two years ago, is still not ready for use, prominent analyst Adam Jonas already sees fairytale sales and return potential from “Dojo”. Jonas enthuses that the computer developed for training artificial intelligence (AI) for self-driving cars gives the company an “asymmetric advantage” over the competition.
In addition, Dojo could open up new markets in the future that “go well beyond the sale of vehicles.” “Imagine any device with a camera that makes real-time decisions based on its field of view,” cheers Tesla fanboy Jonas.
Investors responded by buying. Tesla shares temporarily gained 9 percent to $270 in early US trading on Monday.
Morgan Stanley sets price target at $400
That Tesla is because of its controversial autopilot and various accidents who currently has to answer in court for the death, Jonas leaves unmentioned in his study. The US traffic regulator has also targeted Tesla because of the faulty software. The The myth of autonomous driving could soon collapse for Tesla.
Morgan Stanley doesn’t dispute this. The US investment bank increased its price target for Tesla shares to $400 – that would be a price potential of more than 50 percent. Morgan Stanley has set the highest price target of all US brokerage houses. At a rate of $400 the company would have… Elon Musk (52) has a market value of around 1.4 trillion dollars. It is currently around $800 billion.
Dojo not yet ready for use – Tesla invested a billion dollars
Tesla announced “Dojo” two years ago. The supercomputer was originally supposed to be ready for use as early as 2022. According to information from July, the company plans to invest $1 billion in this project in the coming months.
Morgan Stanley analyst Jonas apparently can hardly wait for completion: Tesla’s software and services division will more than double its sales to $335 billion by 2040, Jonas predicted. The share of group revenues will increase to 60 percent from the current 30 percent.
Jonas calls out to the last doubters who don’t really want to believe in a price target of $400: With “Dojo”, the company has developed an advanced supercomputing architecture that pushes boundaries and gives the company a “decisive advantage” in a ten -trillion dollar market.
Then please buckle up.