Headline comes from Bloomberg (yahoo link)
TSLA is up nearly 10% today.
Morgan Stanley's upgrade of TSLA was a target of $400, up from $250.
Excerpt from the article:
Tesla has been mentioning how Dojo gives it an edge in AI and self-driving technology since at least 2021. In July this year, CEO Elon Musk told investors that the carmaker plans to invest more than $1 billion on the project by the end of 2024.
“As a point of reference, in 2022, Nvidia spent $7 billion across the entire company on research and development,” Gene Munster, co-founder and managing partner at Deepwater Asset Management, wrote in a note in July. “In other words, spending $1 billion plus on a single product is aggressive and speaks to Musk’s urgency at making good on this FSD prediction.”
Seth Goldstein of Morningstar Research Services LLC says that, “while it’s good for Elon to push the team to go as quickly as possible, in reality Tesla usually sees a delay from Elon’s original timelines.”
“It doesn’t mean they aren’t making progress,” Goldstein said in a phone interview Monday. “Once Dojo is up and running and takes over the software training, it will allow Tesla to update software more quickly and increase subscriptions at software margins, which can be a big value driver.”
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