Morgan Stanley Upgrades Tesla Stock Rating, Raises Price Target to $400

Gear Musk2023-09-11

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.

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Comments

  • AdamAniQAzem
    2023-09-11
    AdamAniQAzem
    Target 300 for this week😉
  • GggSlimeR
    2023-09-11
    GggSlimeR
    Thanks,Do not like my comment 
  • a4xrbj1
    2023-09-11
    a4xrbj1
    Adam is a Tesla bull but this (final) acknowledgement of Tesla as a SaaS company and the promising profits based on Dojo/FSD and selling these to other car manufacturers is a good (buy) signal. So far most WS analysts have completely ignored this revenue/profit potential in their evaluation and rated Tesla purely on automotive revenue/margin numbers.
  • Patek1975
    2023-09-11
    Patek1975
    Let get rich 
  • Bi Han
    2023-09-11
    Bi Han
    Only a matter of time before it reaches $400 😇😇😇
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