Gains

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<p class="has-drop-cap">Tesla’s shares edged higher in market pre-open on Monday after Morgan Stanley analysts <a aria-label="hiked their price target on the stock (opens in a new tab)" href="https://finance.yahoo.com/news/tesla-surge-thanks-dojo-supercomputer-032644640.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">hiked their price target on the stock</a>, citing bullishness on the company’s recently launched supercomputer Dojo. According to the bank, Dojo could become a new major growth driver for Tesla and give it an “asymmetric advantage.”&nbsp;</p> 
<h3 id="morgan-stanley-says-dojo-can-boost-tesla-s-market-value-by-up-to-500b">Morgan Stanley Says Dojo Can Boost Tesla’s Market Value By Up to $500B</h3> 
<p>Shares of Tesla rose more than 5% in premarket trading on Monday after Morgan Stanley voiced its bullishness on Dojo, the <a aria-label="electric vehicle (EV) maker’s supercomputer (opens in a new tab)" href="https://www.theverge.com/2023/7/19/23800854/tesla-driverless-dojo-supercomputers-production" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">electric vehicle (EV) maker’s supercomputer</a>. The company’s stock was trading at $262.80 at the time of writing.</p> 
<p>Morgan Stanley, one of the biggest Wall Street banks, said Tesla’s Dojo supercomputer could boost the company’s enterprise value by as much as $500 billion through rapid adoption of robotaxis and network services. The bank’s analysts believe Dojo can unveil “new addressable markets” for Tesla and put the automaker at “an asymmetric advantage” in a multi-trillion dollar market.</p> 
<p>As a result, Morgan Stanley strategists, including Adam Jones and Daniela M Haigan, upgraded TSLA’s stock rating to Overweight from Equal-Weight. In addition, the analyst hiked the 12-month Tesla stock price target to a Wall Street high of $400 per share from $250.&nbsp;</p> 
<p>Essentially, Dojo is a supercomputer designed and built by Tesla to process substantial amounts of data in training driving systems. It will primarily be used for training Tesla’s machine learning models to enhance the company’s sophisticated <a aria-label="Full Self-Driving (FSD) driver-assistance system (opens in a new tab)" href="https://www.tesla.com/support/autopilot" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Full Self-Driving (FSD) driver-assistance system</a>. According to Tesla, Dojo had begun to be used in production in August.&nbsp;</p> 
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<h3 id="tesla-stock-price-subdued-lately-due-after-new-price-cuts">Tesla Stock Price Subdued Lately Due After New Price Cuts</h3> 
<p>Assuming it can hold on to its current gains, the premarket surge would provide a welcome boost for Tesla’s share price following a volatile performance over the past month, during which the stock rose just 2.4%.&nbsp;</p> 
<p>The EV giant <a href="https://tokenist.com/tesla-tumbles-3-in-premarket-after-sixth-price-cut-this-year/" rel="noopener noreferrer nofollow" class="deco-link">imposed price cuts</a> in 2023, suggesting possible demand issues for its top-of-the-line vehicles. Last month, the company <a href="https://tokenist.com/tesla-drops-3-after-price-cuts-announced-in-china/" rel="noopener noreferrer nofollow" class="deco-link">reduced prices</a> of its Model Y long-range and performance models in China to address a significant decline in sales in July.&nbsp;</p> 
<p>However, Tesla’s shares remain around 130% higher in 2023, marking a <a href="https://tokenist.com/tesla-rivian-soar-as-deliveries-higher-than-estimated-for-q2/" rel="noopener noreferrer nofollow" class="deco-link">significant rebound</a> from its 2022 lows. Following last month’s price reductions, Tesla’s car sales rose 2.2% in August year-over-year to 1.94 million units, representing the first annual growth since May.&nbsp;</p> 
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<p><em><strong>What do you think about Morgan Stanley’s views that Dojo could become a major growth driver for Tesla? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/tesla-gains-in-premarket-as-analysts-say-dojo-offers-asymmetric-advantage/">Tesla Gains in Premarket as Analysts Say Dojo Offers Asymmetric Advantage</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Tesla Gains in Premarket as Analysts Say Dojo Offers Asymmetric Advantage

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