Major investment bank Morgan Stanley boosted its Tesla stock outlook based on the company’s Dojo supercomputer project. Analyst Adam Jonas raised his TSLA price target 60% to $400 per share and upgraded the rating to Overweight.
Morgan Stanley believes Dojo could add up to $500 billion in enterprise value for Tesla by accelerating robotaxi adoption and software subscriptions. Their updated bull case scenario models TSLA stock reaching $550.
The dramatic upgrade follows Jonas’ 40-page deep dive report on Tesla’s AI and supercomputing capabilities. He highlights that Tesla’s Dojo team has over 250 years of combined hardware and software expertise.
Dojo’s purpose-built AI training power may enable breakthroughs in full self-driving, humanoid robots like Optimus, and other ambitious innovation pursuits. Morgan Stanley’s positivity signals Wall Street is beginning to appreciate Tesla’s potential beyond automotive.
Today, Tesla’s lofty valuation relative to car sales reflects investor faith in future technology like Dojo. Driverless ride-hailing, AI assistants, insurance telematics, and neural network training services could fundamentally expand Tesla’s addressable markets.
As Elon Musk continues pushing Tesla’s envelope beyond electric vehicles, Dojo represents a key long-term asset. By leveraging Dojo’s capabilities across its businesses, Tesla could grow into one of the world’s most valuable enterprise software companies.
Morgan Stanley’s overhaul of previous cautious TSLA projections shows even Tesla skeptics are finding it harder to bet against Elon Musk’s grand vision. If Tesla can capitalize on Dojo’s promise, the optimistic outlook may prove justified.