Tesla's Dojo: Can It Solve Self-Driving Car Problem?

According to the analysis conducted by financial experts at Morgan Stanley, Tesla's new innovation of the Dojo supercomputer has the potential to not only revolutionize the self-driving car industry but also unlock entirely new market opportunities, potentially propelling the electric car maker's market value to nearly $600 billion.

Tesla's Dojo supercomputer, introduced in July, is a testament to the company's commitment to advancing artificial intelligence (AI) and self-driving technology. This supercomputer is designed to train AI models for autonomous vehicles, with the goal of achieving full self-driving capabilities. Tesla has committed more than $1 billion to the development and deployment of Dojo over the next year.

The analysts, led by Adam Jonas, believe that Dojo has the power to open up entirely new addressable markets. The key idea here is that if Dojo can significantly improve a car's ability to "see" and "react" in real time, it can be applied to various other devices equipped with cameras and AI. This expansion of capabilities could extend Tesla's reach into markets that go well beyond selling EVs at a fixed price.

One of the most immediate applications of Dojo is its potential to accelerate Tesla's entry into the robotaxi market. By enhancing the AI capabilities of Tesla's vehicles, the company can move closer to realizing Elon Musk's vision of a fully autonomous ride-sharing service.

Morgan Stanley's vision extends beyond robotaxis. The idea of "any device at the edge with a camera that makes real-time decisions based on its visual field" opens up a plethora of possibilities, such as security cameras, drones, delivery robots, and industrial automation systems. If Tesla's Dojo technology proves effective in improving visual perception and decision-making for these devices, the market potential becomes staggering.