Tesla soars 10% after Morgan Stanley says its Dojo supercomputer could add $500 billion to its market cap

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'The more we looked at Dojo, the more we realized the potential for underappreciated value in the stock,' Morgan Stanley said.

company is driven by the upside potential in its Dojo supercomputer, which the bank says can add another $500 billion to Tesla's market value.

"The same forces that have driven AWS to reach 70% of Amazon total EBIT can work at Tesla, in our view, opening up new addressable markets that extend well beyond selling vehicles at a fixed price. The catalyst? Dojo, Tesla's customer supercomputing effort in the works for the past 5 years," Adam Jonas said.which requires immense computing power that is well-suited for a supercomputer like Dojo.

He estimated that Dojo could drive $6.5 billion in cost savings for Tesla over the next couple of years as the company increases its computing power with the in-house developed supercomputer.can speed up the development of autonomous driving capabilities. "The potential efficiency, speed, and cost benefits compared to current GPUs could allow Tesla to materially reduce their autonomy timeline," Jonas said.and have broader implications for the various science projects being worked on by Musk. And that's what makes Tesla's ownership of the supercomputer so special for investors.

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