Tesla Stock Gains Half a Trillion Dollars With The FSD Supercomputer

(CTN News) – It was estimated that Tesla Stock (TSLA)’s Full-Self Driving (FSD) supercomputer can boost Tesla’s value by a half-trillion dollars, which led to an upgrade and a 60% price target hike Sunday. Monday, TSLA jumped.

TSLA stock was upgraded to overweight by Morgan Stanley’s Adam Jonas on Sunday, with a 400 price target. According to Jonas, Tesla Dojo, the supercomputer used to train its FSD technology, may contribute to the company’s $500 billion valuation. Morgan Stanley’s “top pick” according to Jonas is Tesla stock.

“We believe Tesla can reasonably test its all-time high of $400 over the next 12 months, as we do with many other large-cap tech stocks on your screen,” Jonas wrote Sunday.

Morgan Stanley analysts raised the company’s bull case valuation to 550, up from 450, and the bear case valuation to 120, up from 90. As Jonas writes, he expresses optimism about Tesla’s autonomous robotaxis and network services, as well as Dojo’s potential.

In Monday’s market trade, Tesla stock gained 9.5% to 272.22, advancing above its 50-day moving average.

Tesla’s value will be almost exclusively derived from AI and robots, both vehicle- and humanoid-based, Elon Musk wrote on X, formerly Twitter.

Autonomous driving is Tesla’s White Whale

The trajectory of Tesla’s Full Self-Driving technology is perhaps its biggest unknown. According to Musk, FSD is on the cusp of full autonomy. However, FSD remains a Level 2 driver-assist system. The driver must keep their hands on the steering wheel at all times, ready to take over at any moment.

Tesla CEO Elon Musk says autonomous cars have enormous value, and ARK Invest CEO Cathie Wood is one of those valuing Tesla’s FSD highly.

According to Wood’s ARK Invest, Tesla stock will reach $2,000 per share in 2027, up from 250 now. The firm cites Tesla’s autonomous “robotaxi business” as a “key driver” of its valuation.

According to ARK, Tesla robotaxis will already be generating significant revenue by now.

As of Sept. 1, Tesla reduced the price of FSD in the U.S. to $12,000 from $15,000. Reuters reported on August 24 that the National Highway Traffic Safety Administration (NHTSA) is close to ending its two-year investigation into Autopilot and FSD.

There is no indication that NHTSA regulators will take significant action against Tesla.

Tesla stock prices

Tesla has forged a new base with an official buy point of 299.29 following July’s Q2 earnings report, according to Market Smith.

The Tesla stock fell Friday, but rose 1.4% last week between its 50-day and 21-day moving lines. The Aug. 31 high of 261.18 would be a specific trigger for an early entry in TSLA stock if the 50-day is decisively moved above it.

According to IBD’s Automakers industry group, Tesla stock ranks third. The Composite Rating is 95 out of 99. Based on its Relative Strength Rating of 85 and EPS Rating of 93, Tesla stock has a Relative Strength Rating of 85.

SEE ALSO:

Tesla Nearly Doubles EV Share In China In August As Car Sales Jump 2.2 Percent