Tesla Upgraded at Morgan Stanley, Stock Surges 7%

Morgan Stanley analysts upgraded Tesla (NASDAQ:TSLA) to Overweight and designated it as a Top Pick, setting a price target of $400 per share, which is now the highest on Wall Street. As a result, the stock surged more than 7% intra-day today.

The upgrade is primarily driven by Tesla's Dojo Supercomputer, which the analysts believe has the potential to increase Tesla's enterprise value by up to $500 billion. Much like Amazon's AWS transformed the company's EBIT, the analysts see Dojo accelerating the adoption of Mobility (robotaxi) and Network Services (SaaS) for Tesla.

Tesla's Dojo supercomputer is instrumental in enhancing and training its Full Self-Driving (FSD) system, which is crucial for making real-time decisions in challenging driving conditions.