It’s not just cars. It’s technology. And Tesla’s latest venture, the DoJo supercomputer, is causing ripples in both sectors. Wall Street’s cogs have begun turning, and numbers are flying as analysts debate the impact of this powerhouse innovation.
Shares Surge with Upgrade
Tesla’s stocks were turbocharged recently with an enthusiastic nod from Adam Jonas, a prominent Wall Street analyst. After diving into the potential of Tesla’s DoJo supercomputer, Jonas escalated his Tesla price target by a whopping 60%, placing it at $400 a share – now the zenith among Wall Street estimates. This wasn’t merely a leap of faith. Jonas predicates this increase on the DoJo potentially adding an astronomical $600 billion to Tesla’s market cap. How? Through a rapid uptake in Mobility (think robotaxis) and Network Services (envision software-as-a-service).
Elon Musk’s Vision
DoJo isn’t just another supercomputer. Elon Musk envisions this AI-driven tech not only accelerating Tesla’s autonomous vehicle ambitions but also powering the licensing of its Full-Self Driving (FSD) tech to top-tier automotive competitors. Given Musk’s track record, this isn’t just a dream; it’s a mission. In his perspective, autonomous driving isn’t just a fancy feature; it’s the future’s profit pulse.
With Tesla’s data vault already brimming with insights from approximately 300 million miles of driving, Musk predicts this number will soon soar into the tens of billions. This data wealth gifts Tesla a competitive edge, bolstering its AI investments and fully leveraging the possibilities of the DoJo.
Tesla: Car Manufacturer or Tech Titan?
As Adam Jonas pens it, the eternal debate lingers: Is Tesla fundamentally an automobile manufacturer or a groundbreaking tech firm? Jonas’ take: Why not both? He sees the future of Tesla as rooted in software and service revenues. Drawing parallels to the remarkable success of Amazon Web Services, Jonas suggests Tesla could tap into previously uncharted markets, expanding beyond mere vehicle sales.
Tackling autonomous vehicles isn’t just an ambition; it’s one of the grandest AI challenges. Jonas believes that in trying to decode this riddle, Tesla’s sophisticated supercomputing infrastructure, backed by custom silicon, might just place it leagues ahead in a market worth $10 trillion.
The Echoing Optimism
Deepwater Asset Management’s Gene Munster, a staunch Tesla supporter, postulates that licensing the FSD tech alone might churn out $20 billion in yearly revenue within half a decade of its inaugural agreement. If Tesla manages to carve a niche with a 10% market slice, that could translate to a staggering $100 billion in operating income.
Munster further speculates that if one significant original equipment manufacturer buys into Tesla’s tech, others will likely follow suit. He likens this to the recent trend where seven auto giants hopped on the bandwagon to utilize Tesla’s charging network.
Meanwhile, Musk remains cautiously optimistic. While acknowledging his past optimism might’ve been premature, he anticipates that Tesla’s self-driving tech could outperform human drivers in safety by the end of the year.
In Musk’s words, the road to achieving full self-driving capabilities that are 10 times safer than an average human motorist is clearer than ever. Only time will reveal if these predictions hold water, but for now, the future seems electric!