The Zhitong Finance App learned that Morgan Stanley analyst Adam Jonas published a research report, raising the Tesla (TSLA.US) rating from “neutral” to “increased holdings,” raised the target price from $250 to $400, and claimed that Tesla was its first choice in the electric vehicle industry. The analyst said the company's biggest future value driver will be its software and services revenue.
Jonas pointed out that the power that drives Amazon (AMZN.US)'s AWS service to 70% of the company's total EBIT also applies to Tesla, and that this will help it develop new potential markets that go far beyond selling cars at fixed prices.
A large part of the reason Morgan Stanley is optimistic about Tesla's technical advantages is related to Dojo. According to reports, Dojo is a supercomputer specially designed within Tesla to train every Tesla car's internal fully autonomous driving system.
Crucially, Tesla management has stated that the company needs as much computing power/Nvidia (NVDA.US) GPU cluster as possible, but is unable to secure the number of chips needed to train cars. Thus, to some extent, Dojo's development was based on the reason that the company could develop a more effective system to meet their needs for processing large amounts of data in training driving systems without having to pay excessive costs.
“We believe Dojo can add $500 billion to Tesla's business value, which can be demonstrated through faster adoption rates in robotaxi (Robotaxi) and web services.”