Technology
Tesla's Market Cap Could Rise by $500 Billion
September 11, 2023 8:30 am
Tesla Inc. (NASDAQ: TSLA) has a market cap of $800 billion. That could rise to $1.3 trillion if its new supercomputer product is successful. This would put its stock market value at the same level as Amazon’s. (These are America’s most hated companies.)
According to Reuters: “Tesla’s Dojo supercomputer could power a near $600 billion jump in the automaker’s market value by boosting the adoption of robotaxis and its software services, Morgan Stanley analysts said.”
Tesla’s stock already has benefited from the news. Electrek reports: “The new factoring-in of Dojo has resulted in Morgan Stanley raising its price target on Tesla’s stock price from $250 to $400, which is a massive change for large firm like Morgan Stanley.”
Barron’s reports that Tesla’s increase in market cap is due to the fact that Tesla has become an AI stock and will see a surge because AI stocks carry such a huge premium.
Street Insider points out that the Morgan Stanley call is more than just a price target: “The Wall Street brokerage upgraded its recommendation on Tesla’s stock to ‘Overweight’ from ‘Equal-weight’ and made it their ‘top pick,’ replacing Ferrari’s U.S.-listed shares.”
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