Last week, Tesla Inc (NASDAQ: TSLA) made a rare appearance at this year’s Munich show with a revamped version of its best-selling Model 3 and together with Chinese EV makers, including its biggest China rival, BYD Company Limited (OTC: BYDDY), it overshadowed Europe’s homegrown legendary automakers, including Volkswagen AG (OTC: VWAGY) and Mercedes Benz (OTC: MBGAF).
On Monday, Tesla shares soared 10% fueled by an update from Morgan Stanley. Morgan Stanley analysts compared the potential of Dojo at Tesla to the “same forces that have driven” Amazon Web Services to propel the profitability of Amazon.com Inc (NASDAQ: AMZN) to new heights.
Also, Reuters reported that Nuevo Leon Governor provided more details about Tesla’s next Gigafactory in Mexico. While Tesla is working on bringing its Cybertruck to the world’s roads, BYD brought as many as six models to Germany’s IAA show while its other China rival, Nio Inc (NYSE: NIO) will be launching a refreshed EC6 SUV on Friday.
Morgan Stanley Views Tesla To Be As Much Of A Tech Company As It Is An EV Maker
With their upgrade, Morgan Stanley analysts argued that Tesla should be viewed as a tech company as much as it is an EV maker. Morgan Stanley’s reasoning is centered in its expectation that Tesla will selling AI technology to other automakers. Moreover, instead of pain for chips to Nvidia Corporation (NASDAQ: NVDA), analysts believe Tesla will be saving money by using its own GPUs as much as possible.
After all, Tesla CEO Elon Musk said in July that the EV king will be spending more than $1 billion on Dojo by the end of next year. By developing Dojo, Tesla is enhancing its AI machine learning efforts that will be used to improve its software and if we learned everything by know, it is that EVs are more about software than hardware. Morgan Stanley also expects that Dojo-enabled services and subscription software to generate $2,160 in recurring revenue every month from Tesla EV owners in 2030 whith Tesla also developing services that is currently not offering. All in all, Morgan Stanley believes that the Dojo supercomputer alone can boost the market value of Tesla by $500 billion. Undoubtedly, all eyes will be on Tesla’s next AI day that is expected in early 2024.
Tesla Continues To Expand Its Global Footprint
In March, Elon Musk announced that Tesla is opening a gigafactory in northern Nuevo Leon state, joining major automakers, including Bayerische Motoren Werke Aktiengesellschaft (OTC: BMWYY), General Motors (NYSE: GM) and Ford Motor (NYSE: FM) who have also announced plans to step up EV production in Mexico. On Monday, Reuters reported that Nuevo Leon Governor Samuel Garcia revealed that Tesla and its suppliers will be investing $15 billion over the next two years in this facility. This is three times more than the $5 billion investment that Mexican officials previously announced. However, nor Tesla nor Nuevo Leon officials didn’t respond to a request for comment on this statement.
Nio’s Launch Of The 2023 EC6
Upon the announced Friday launch, Nio will be delivering its revamped SUV almost immediately, after announcing it back in 2019. Nearly four years after debuting its first-generation SUV, the Chinese EV startup has expanded its lineup with multiple sedans, as well as SUVs. But to this day, it is producing its flagship models that started it all almost half a decade ago. Out its eight current models, the EC6 is the last to make the transition to the second generation NT 2.0 EV platform. Nio already shared images of the revamped EC6 SUV on its Weibo page, ahead of the official launch on Friday. Pricing is yet to be announced and although deliveries in China will begin immediately, it still hasn’t revealed when will its second generation EC6 arrive to its European markets.
Only Time Will Show What Tesla Will Do With The Power Of AI
Last week, Chinese EV makers gave European automakers quite a warning and push to speed up their electrification efforts. Although the EV landscape is getting more and more crowded, Tesla clearly won’t be giving up its throne easily. As Google CEO Sundar Pichai put it, AI will bring the biggest technological shift of our lifetime, so only time will show how Tesla will use this superpower as it already proved its disruption power to the world.
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