Tesla Inc. shares increased more than 10 percent in the regular trading on Monday after Morgan Stanley said its Dojo supercomputer could add $500 billion in the electric vehicle maker's market value.
Analysts at Morgan Stanley said that Dojo would potentially unlock new revenue streams through wider adoption of robotaxis and software services. According to them, Dojo will be able to open up new addressable markets that extend well beyond selling vehicles at a fixed price.
In a note, Morgan Stanley said, "Investors have long debated whether Tesla is an auto company or a tech company. We believe it's both, but see the biggest value driver from here being software and services revenue."
Tesla's Dojo in-house supercomputer is designed to train artificial intelligence or AI systems to complete complex tasks like assisting Tesla's driver-assistance system Autopilot as well as help propel its "Full Self-Driving" efforts.
According to the analysts, Dojo's potential at Tesla is equal to the same forces that have driven Amazon Web Services to boost Amazon's profitability significantly.
They further said that the upcoming latest version of Tesla's full self-driving system and Tesla's next AI day will be worth watching.
In July, Tesla had said that it started production of its Dojo supercomputer to train its fleet of autonomous vehicles.
Tesla's shares closed Monday's trading on Nasdq at $273.58, up 10.09 percent. In pre-market acticity, the shares were down 0.8 percent at $271.45.
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