Tesla’s stock has been on an absolute tear over the past few days!

In total, the stock ran around 12.8% since the end of the trading day on Friday…

If you’re use to looking at small cap stocks, then a move like this won’t sound particularly impressive.

Bear in mind though that Tesla has a market cap of over $800 billion…

Moves of this magnitude rarely happen in mega-cap companies like this!

So what exactly caused the bulls to get excited?

It all started with a very positive analyst take on Tesla…

Morgan Stanley raised their price target from $250 all the way to $400 on Sunday.

So what changed?

Morgan Stanley argues that the AI supercomputer Dojo (designed by Tesla) may add up to $500 billion in value for Tesla in the coming years!

They also make the case that Dojo is a more cost efficient alternative to Nvidia’s H100 chips since it has been designed specifically for the needs of the company.

That’s not to say that Tesla has no use for H100 chips…

Elon Musk has made it very clear that they are looking to buy as many as they can get their hands on in order to maximize the machine learning capabilities of their Inference Engine.

Morgan Stanley is also making the case that Vision AI tech will have useful applications in areas outside of vehicle autonomy…

These include: manufacturing, aviation, healthcare, railways, utilities, robotics and security.

There are still so many unknowns for Musk’s company, but one thing’s for certain…..the next few years are going to be very exciting!

That’s all for now.

Until Next Time,

-Damian