The upgrade led to a 7% increase in Tesla's stock, reaching about $265 in morning trading. Morgan Stanley analysts changed their rating for the electric vehicle stock from hold to buy, raising their price target from $250 to $400. They predict that Tesla could hit its highest split-adjusted level since January 2022. However, some critics argue that while Dojo is where Tesla could benefit from recent AI advances, generating revenue from selling the service to outside firms might be a long-term opportunity.
Key takeaways:
- Tesla's stock price reached its highest level in over a month due to an upgrade from Morgan Stanley, which highlighted a potential non-vehicle revenue stream that could push the company's market capitalization over $1 trillion.
- Morgan Stanley's upgrade was primarily driven by optimism for Tesla's Dojo supercomputer, which could add up to $500 billion in enterprise value for Tesla and help the company become a major player in the software-as-a-service market.
- Despite the optimism, some critics, such as Barclays analysts, believe that generating revenue from selling the Dojo service to outside firms is likely a long-term opportunity.
- Elon Musk, Tesla's largest individual shareholder, is currently the world's richest person with a net worth of $261 billion, according to Forbes.