) stock popped more than 6% on Monday as a prominent Wall Street analyst stirred up excitement about the artificial intelligence prospects for the electric-vehicle maker.
"Investors have long debated whether Tesla is an auto company or a tech company," Jonas wrote. "We believe it's both, but see the biggest value driver from here being software and services revenue. The same forces that have driven AWS to reach 70% of AMZN total EBIT can work at Tesla, in our view, opening up new addressable markets that extend well beyond selling vehicles at a fixed price.
"Dojo is the key to unlocking Tesla's double-flywheel effect – integrating and accelerating the synergies between Tesla's Core Auto Flywheel and Tesla's SAAS Flywheel... accelerating time to market and expanding the addressable market," Jonas wrote. "With a highly experienced semiconductor team, Tesla has built a custom AI ASIC chip, that, due to its core function of processing vision-based data for autonomous driving use cases, can operate more efficiently than the leading cutting-edge generative Al-purpose chips on the market , and at a fraction of the cost."Tesla has made a slew of supercharging deals over the past several months, including a deal last week with Hilton hotels.
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