Tesla's Dojo Supercomputer: A Potential $500 Billion Game-Changer
In a recent note, analysts at Morgan Stanley have made a bold prediction that Tesla's cutting-edge Dojo supercomputer could be the catalyst behind a staggering $500 billion surge in the electric vehicle (EV) manufacturer's market value. This forecast sent Tesla's stock soaring by over 6% during early trading, underlining the significance of Dojo in the EV giant's future.
Headed by long-time Tesla analyst Adam Jonas, the Morgan Stanley team envisions Dojo as a pivotal driver of new revenue streams, primarily through the widespread adoption of robotaxis and software services. Drawing parallels with Amazon Web Services, the analysts believe that Dojo could elevate Tesla's profitability to unprecedented heights, emphasizing the company's position as both an automaker and a tech powerhouse.
Dojo, an in-house supercomputer, has been in development at Tesla for approximately five years, specifically designed to train artificial intelligence (AI) systems for complex tasks. These tasks range from enhancing Tesla's driver-assistance system, Autopilot, to powering the ambitious "Full Self-Driving" initiative.
What sets Dojo apart is its potential to unlock "new addressable markets that extend well beyond selling vehicles at a fixed price." In essence, it could revolutionize how Tesla generates revenue, expanding its horizons far beyond traditional vehicle sales.
Morgan Stanley's analysts also highlight two key upcoming events in the Tesla calendar. Firstly, they eagerly anticipate the unveiling of the latest version of Tesla's Full Self-Driving system, expected later this year. Secondly, they have their eyes on Tesla's next AI day, scheduled for early 2024 (although the exact date remains unconfirmed).
While Tesla's stock has already doubled in value since the beginning of the year, it is important to note that it has not yet reached its all-time high of $414.50 from November 2021. Despite this, Tesla maintains its position as the world's most valuable carmaker, with a market capitalization of approximately $788.74 billion as of the recent market close.
Dojo's significance lies in its potential to supercharge Tesla's AI capabilities, particularly in the realm of computer vision technology that underpins autonomous driving. While Tesla initially teased Dojo at its AI Day in 2021, it was still in the early stages of development. Subsequent updates in 2022 indicated progress, but it wasn't until this summer that Dojo began its gradual deployment, with a goal of achieving a 100 Exa-flop capacity by the end of 2024.
Morgan Stanley's Adam Jonas underscores the transformative potential of Dojo, describing it as an asset that could add an astounding $500 billion in value to Tesla. Beyond advancing self-driving technology, Dojo may also become a direct revenue generator, aligning with CEO Elon Musk's vision.