Tesla’s stock rose 10% in the first half of trading on Monday as a result of a Morgan Stanley upgrade and upbeat note that predicted the company would sell AI technology to other automakers and save money by utilising its own GPUs as much as possible rather than paying for chip supply from Nvidia.
Tesla could be considered a tech company in addition to a manufacturer of electric vehicles, according to Morgan Stanley analysts. As of Monday, the firm increased its earlier price forecast for shares of Tesla from $250 to $400, highlighting the potential of the company’s Dojo supercomputer project and custom silicon. According to Morgan Stanley, Dojo has the potential to increase the company’s value over the long term by up to $500 billion.
Elon Musk, the CEO of Tesla, stated in July of this year that the company intended to spend more than $1 billion on Dojo by the end of 2024. Dojo is being developed by Tesla to assist with AI machine learning and computer vision training for its automobiles and emerging robotics effort. Tesla uses data and video from its customers’ cars, among other things, to develop new features and enhance the software that is already available.
Source (CNBC)
