Yesterday the market saw the rise of Tesla’s stock (TSLA) in pre-market trading. This was due to an optimistic report by Morgan Stanley about Tesla’s Dojo Supercomputer. According to the analysts at Morgan Stanley, Tesla’s Dojo Computer can allow the electric automaker’s market value to jump by $500 billion.
According to CNN Business,
“Shares of Tesla jumped more than 6% during early trading Monday morning […] The Morgan Stanley team, lead by longtime Tesla analyst Adam Jonas, predicted that the massive drive in value could come from Dojo potentially unlocking new revenue streams through the wider adoption of robotaxis and software services.”
The Morgan Stanley analysts compared the potential of Tesla’s Dojo with the same forces that drove Amazon’s Web Services to take Amaxzon’s profitability to new heights.
A note came along with the report, which stated that there has always been a debate among investors about categorizing Tesla as an auto company or a tech company. Morgan Stanley considers Tesla to be doing both, and the biggest value driver for Tesla is its software and services revenue.
The Dojo Supercomputer is Tesla’s own customer supercomputer platform. The tech giant built it for AI machine learning and video training with the use of the video data coming from its electric vehicles. The computer has been in the works for about five years.
Tesla already has various really powerful NVIDIA GPU-based supercomputer systems. However, what makes the Dojo different is that it is custom-built and makes use of chips and an entire infrastructure that Tesla designed from the ground up.
The job of Dojo is to complete complex tasks that are required for assisting Tesla’s driver-assistance system, Autopilot. It will help in making the “Full Self-Driving” feature better as well.
A passionate writer and an avid reader, Soumava is academically inclined and loves writing on topics requiring deep research. Having 3+ years of experience, Soumava also loves writing blogs in other domains, including digital marketing, business, technology, travel, and sports.