Tesla’s Dojo Supercomputer Could Boost Market Cap by $500 Billion

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According to analysts at Morgan Stanley, as reported by Datacenter Dynamics, the launch of the Dojo supercomputer could increase Tesla’s market capitalization by $500 billion. In other words, Elon Musk’s company’s valuation could rise by approximately 60%.

Tesla intends to invest over $1 billion in the Dojo project by the end of 2024. This high-performance computing system will aid in the development of innovative technologies for autonomous vehicles. The system will incorporate Tesla’s in-house developed D1 chips. In the future, Dojo’s performance is planned to reach 100 exaflops.

As of September 2023, Tesla’s market capitalization stands at approximately $778 billion, with shares trading at around $248 each. It’s worth noting that Tesla’s stock price has already more than doubled this year after a decline in 2022. Morgan Stanley predicts that following the implementation of the Dojo system, Tesla’s stock value will increase by roughly 60%, reaching $400.

“The more we delved into the Dojo project, the more we realized the potential for Tesla’s stock to be undervalued,” said Morgan Stanley analyst Adam Jonas. It is believed that Dojo will accelerate the development of autonomous driving technologies and strengthen Tesla’s position in the cloud services segment. Previously, Tesla CEO Elon Musk stated that the company is developing the system partly because it cannot obtain a sufficient number of GPU-based accelerators to meet its needs.

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Martin Harris
I'm Martin Harris, a tech writer with extensive experience, contributing to global publications. Trained in Computer Science, I merged my technical know-how with writing, becoming a technology journalist. I've covered diverse topics like AI and consumer electronics, contributing to top tech platforms. I participate in tech events for knowledge updating. Besides writing, I enjoy reading, photography, and aim to clarify technology's complexities to readers.

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