Tesla (TSLA) share price soars thanks to Dojo

Tesla is a company that never ceases to fascinate, and recently the company's share price (TSLA) has seen a marked increase. The reason? An optimistic report from Morgan Stanley on Tesla's Dojo supercomputer. In this blog post, we'll dive deeper into what Dojo is, why it's so important to Tesla, and how it could affect the company's future.

What is Dojo?

Dojo is Tesla's own supercomputing platform, built from the ground up for AI machine learning and, more specifically, for video training using video data from Tesla's vehicles. Previously, Tesla used large NVIDIA GPU-based supercomputer clusters, but Dojo is a purpose-built computer that uses circuits and an entire infrastructure designed by Tesla themselves.

Why is Dojo Important?

Dojo is expected to greatly increase Tesla's capacity to train neural networks using video data, which is critical to the computer vision technology that powers the company's self-driving efforts. Tesla has developed an advanced supercomputer architecture that could give the company an asymmetric advantage in a market worth $10 trillion, according to Morgan Stanley.

Financial Impact

Morgan Stanley has massively increased its price range for Tesla's shares, from $250 to $400, which is a significant change. Analysts believe that Dojo alone could add around $500 billion in value to the company. Tesla's stock rose by as much as 6% in trading after the note was released.

Future prospects

In addition to accelerating its self-driving efforts, Morgan Stanley also discusses the potential for Dojo to become a direct revenue generator, something that CEO Elon Musk has hinted at in the past.

Critical Voices

It is worth noting that Tesla has a long history of exaggerating timelines and over-promising results. There are skeptics who question whether Dojo will really be the game-changer that Tesla and Morgan Stanley predict.

Conclusion

The Dojo supercomputer has the potential to be a real turning point for Tesla, not only in the area of self-driving cars but also as a possible new source of revenue. While there is some skepticism, no one can deny that Tesla's progress with Dojo is an exciting step forward for the company and its shareholders.