According to experts at Morgan Stanley, Tesla Dojo supercomputer might propel a $500 billion increase in the electric vehicle manufacturer’s market capitalization.

In response to the optimistic assessment of Tesla’s supercomputing efforts from Morgan Stanley’s team, shares of the automaker increased by more than 6% in early trading on Monday. Adam Jonas, a longtime Tesla analyst, led the Morgan Stanley team in its prediction that Dojo might have a significant increase in value as a result of the increased use of robotaxis and software services.

Tesla

The analysts contrasted the potential of Tesla’s Dojo with the “same forces that have driven” Amazon Web Services to increase its profitability.

Investors have debated whether Tesla is an automobile or a tech company for a long time. Although we think it’s both, the memo noted that software and services income would be the main value generator going forward.

Dojo, a Tesla-built supercomputer that has been in development for around five years, is intend to educate AI systems to carry out difficult tasks, such as assisting Tesla’s driver assistance system Autopilot and advancing its “Full Self-Driving” initiatives.

Dojo, according to the analysts at Morgan Stanley, has the potential to create “new addressable markets that extend well beyond selling vehicles at a fixed price.”

According to the experts, the newest iteration of Tesla’s fully autonomous driving system, which is anticipate to be introduce at the end of the year, and Tesla’s intelligence day, which is anticipate to take place in early 2024 but has not yet been disclose, would be “worth watching.”

Tesla’s stock has increase over double since the year’s beginning, but it is still a long way from the $414.50 high set in November 2021.As of Friday’s market close, the most valuable in the world had a market valuation of almost $788.74 billion.

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