AI-Driven Tech Sends Tesla’s Stock Soaring

Justin Hopper September 11, 2023Last Updated: September 11, 2023

4 2 minutes read

AI-Driven Tech Sends Tesla's Stock Soaring

keLast Updated: 11.9.2023 13:08

Tesla stock rocketed in the pre-market early Monday morning and continues to launch upwards through the trading day today. Market analysts raised their price target for the stock on the bet of Tesla’s AI-Driven Investment Opportunity.

Wall Street Wakes Up to Tesla’s AI Potential

Elon Musk’s stock, Tesla, has recently experienced a significant surge, and Wall Street is taking note. Morgan Stanley analyst Adam Jonas recently upgraded Tesla’s stock from “Equal Weight” to “Overweight,” raising the price target from $250 to $400. The reason? Tesla’s burgeoning prowess in artificial intelligence (AI). Jonas argues that Tesla is not just an automaker but also a tech company with significant upside in software and services revenue.

Dojo: The Supercomputer Powering Tesla’s Future

The custom-built supercomputer, Dojo, from Tesla is at the heart of this newfound optimism. Designed to train Tesla’s full self-driving models, Dojo could potentially add up to $500 billion to Tesla’s enterprise value. The supercomputer is not just about autonomous driving; it’s about accelerating Tesla’s time to market and expanding its addressable market. Dojo’s efficient system, built with a custom AI ASIC chip, is said to outperform even Nvidia’s leading-edge generative AI-purpose chips, both in terms of energy consumption and cost. Today Tesla’s stock is up over +9.3% today alone.

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Beyond Cars: Tesla’s Expanding Market Reach

Tesla’s ambitions don’t stop at cars. The company has been making strategic partnerships, like a recent deal with Hilton hotels to expand its supercharger network. In addition, this move is seen as another revenue stream that goes beyond the automotive sector as Tesla’s Dojo system is designed to process visual data for various applications. This includes robotics, healthcare, and security, offering investors a diversified growth story.

The Takeaway: Tesla’s AI-Driven Investment Opportunity

Tesla’s stock is more than just a bet on electric vehicles; it’s an investment in a tech company with a growing focus on AI and software services. With Wall Street analysts like Adam Jonas bullish on the company’s prospects, now may be the time to consider Tesla as a multi-faceted investment opportunity. What are your thoughts? Tweet us and we’ll retweet you on @wealthyvc ????