Shares of Tesla Inc. experienced a significant surge in premarket trading on Monday, climbing 5.8%, following the company’s recent upgrade to a “buy” recommendation by Morgan Stanley. The upgrade comes as Tesla unveils its cutting-edge machine learning supercomputer called Dojo.
Dojo represents a groundbreaking advancement in processing visual data, equipping Tesla to tackle various autonomous operations across different sectors. From self-driving vehicles to factory automation and even humanoid robots, Tesla’s proprietary computing solution sets them apart from other industry players.
Analyst Adam Jonas, among others, highlighted the seismic impact of Dojo in a recent note. Expanding on the significance of this breakthrough, Jonas stated, “For Tesla, this means that autonomy could potentially become a reality sooner than previously expected, reflected in the auto team’s Tesla upgrade to overweight and move to top pick.”
With the introduction of Dojo, Tesla joins an elite group of companies, including META, AMZN, and MSFT, that have successfully developed their own AI computing solutions. This puts Tesla at the forefront of the AI race, allowing them to leverage the full potential of artificial intelligence in revolutionizing transportation, manufacturing, and robotics.
Investors responded positively to the news, prompting Morgan Stanley to raise Tesla’s price target from $250 to $400 per share. This upward adjustment reflects the growing confidence in Tesla’s ability to accelerate the development and deployment of autonomous technologies.
As Dojo takes center stage, Tesla’s commitment to innovation and relentless pursuit of breakthrough technologies continues to position the company as a leader in the electric vehicle market. By harnessing the power of AI, Tesla is pushing the boundaries of what is possible, and investors are taking notice.
What is Dojo?
Dojo is Tesla’s machine learning supercomputer that specializes in processing visual data. It serves as a tailored tool to advance autonomous operations across various industries.
Why did Tesla’s shares climb after the upgrade?
Tesla’s shares experienced a 5.8% climb after Morgan Stanley upgraded the company to a “buy” recommendation. The upgrade was based on Tesla’s introduction of Dojo, an advanced AI supercomputer that has the potential to hasten the development of autonomous technologies.
How does Dojo differentiate Tesla from other companies?
Dojo sets Tesla apart from its competitors by equipping the company with its own proprietary computing solution for AI processing. This positions Tesla as a leader alongside companies like META, AMZN, and MSFT that have also developed their own AI solutions.