Tesla (NASDAQ: TSLA) Gains Momentum with Top Analyst’s ‘Overweight’ Rating and $400 Price Target

Shares of Tesla, Inc. (NASDAQ: TSLA) surged 6.1% in the pre-market trading Monday after the top Wall Street analyst Adam Jonas upgraded the stock rating from equal-weight to overweight, citing the potential of automaker’s DoJo supercomputer.

In addition, Adam Jonas, a Morgan Stanley analyst, raised the Tesla price target by 60%, setting it at $400 per share. This new price target is the highest among all Wall Street brokerages.

These upgrades are primarily based on his belief that the DoJo supercomputer could substantially increase Tesla’s market value by approximately half a billion dollars. He sees this potential boost coming from a faster adoption rate in Mobility (robotaxi) and Network Services (SaaS).

According to Jonas, the DoJo supercomputer, designed to handle massive amounts of data in training driving systems, could give Tesla a distinct competitive advantage in a market estimated to be worth $10 trillion. It could also transform software and services into the most significant value drivers for Tesla in the foreseeable future.

Jonas also pointed out that investors should keep an eye on the following two key events: the release of the next version of Tesla’s full self-driving system by the end of the year and the company’s Artificial Intelligence Day scheduled for early 2024. Tesla stock declined 4.2% since Jonas had downgraded his recommendation on the stock to neutral back in June.

Tesla, Inc. (NASDAQ: TSLA) has been touting the advantages of its DoJo supercomputer in AI and self-driving technology since at least 2021. CEO Elon Musk recently revealed plans to invest over $1 billion in the project by the end of 2024.

It is important to note that Morgan Stanley plays a pivotal advisory role in Elon Musk’s business endeavors, including the monumental $44 billion takeover of Twitter Inc., which is now rebranded as X.