JP Morgan upgraded TESLA rating to Overweight with a higher target price at $400 per share. The analyst believed Tesla’s AI Mojo could add up to $500 billion value to the company as Tesla revenues would come from both software and services, aside from electric car sales.
TESLA is pointing to gain 6.19% in an after-hour trading session.
Wall Street’s biggest investment bank believed AI could handle the robotaxi and the operation of its network services. The AI will be train by Tesla’s in-house super computer that need a large cluster of Nvidia GPU to process vast amount of video data. This super cluster called the Dojo, hence the term “Mojo enter the Dojo”.
The latest TESLA price on Friday was at $248.5 per share and 70 P/E, the lowest point earlier in this year was around $113 per share and the multiple price peaks before are over $400, $360 and $300 through November 2021 to September 2022.