Morgan Stanley Sees Dojo Boosting Tesla’s Value by $500 Billion

Tesla Inc.’s Dojo supercomputer may add as much as $500 billion to the company’s market value through faster adoption of robotaxis and network services, according to Morgan Stanley.

Dojo can open up “new addressable markets,” just like AWS did for Inc., 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 $400 per share from $250.

Shares of Tesla, which have already more than doubled this year, rose as much as 8% Monday. The stock was on track to add about $62 billion in market value. Morgan Stanley is one of Musk’s key advisory firms, including on the $44 billion takeover of Twitter Inc., now known as X.

The supercomputer, designed to handle massive amounts of data in training driving systems, may put Tesla at “an asymmetric advantage” in a market potentially worth $10 trillion, said Jonas, and could make software and services the biggest value driver for Tesla from here onward.

The next version of Tesla’s full self-driving system, expected by year-end, and the company’s potential Artificial Intelligence Day in 2024 are worth watching, he added. Tesla has not formally announced an AI Day for next year.

As of last close, Tesla’s stock price was down about 4.2% since Jonas cut his recommendation to neutral in June, compared with a 2.1% gain in the S&P 500 Index and 2.8% rise in the Nasdaq 100 Index over that time.

Tesla is About 60% Away From Morgan Stanley's Target