Price Target: $300 (25% upside)
Current Price: $240 (as of publishing)
Target Date: Q1 2025
Rating: Overweight
Tesla's evolution from an ambitious electric car startup to a tech powerhouse has been nothing short of incredible.
By mid-2024, Tesla isn’t just making waves in the EV (electric vehicle) market but rather they're leading the charge on innovation across fields like AI, robotics, and energy storage.
For example, recently Tesla has supercharged its autonomous driving tech with their AI-driven Dojo supercomputer.
Furthermore, their energy storage solutions, like the Powerwall and Megapack, are changing the game for how we store and use energy. And let’s not also forget Tesla’s exciting venture into robotics, with humanoid robots that could open up entirely new markets.
Long story short, Tesla is proving that it’s not just an automaker but rather they're a trailblazer across the whole tech sector. So, in today's report, we'll break down how these innovations are fueling Tesla’s growth and why we remain bullish on the future of Tesla.
We're excited, so let's just get straight into it 👇
Staying Ahead of the Game:
As we said before, Tesla isn’t just an electric car manufacturer, they're actually a tech powerhouse pushing boundaries across several high-growth areas.
Here's some of our favorite areas of innovation and how they're continuing to push the boundaries of what we thought was ever possible so quickly:
AI and Autonomous Driving:
Tesla’s development of their Dojo supercomputer is a game-changer for their Full Self-Driving (FSD) tech.
If you're not familiar with it, Dojo is basically designed to process vast amounts of data, improving the neural networks that power Tesla’s autonomous vehicles. This AI-driven approach allows Tesla cars to learn and adapt, making them safer and more efficient over time.
Late last year, Tesla activated the first components of Dojo, which is set to achieve 100 exaflops of computing power by the end of 2024.
Dojo is built with AI-specific chips designed by Tesla, which boosts performance and cuts costs compared to other systems. This gives Tesla a massive edge, delivering a powerful visual computing system at a fraction of the cost. To put this in perspective though, this computing power could place Tesla among the top five organizations globally!
But here’s the kicker: Dojo’s potential goes beyond just driving. This supercomputer positions Tesla to dominate the visual computing and AI sectors. Imagine training AI systems in days instead of weeks, revolutionizing industries from healthcare to security.
For instance, Dojo could analyze massive amounts of medical imaging data to help doctors diagnose diseases faster and more accurately. It could also enhance security systems by improving how surveillance cameras recognize and respond to potential threats.
Even if perfecting FSD takes longer than expected, Dojo’s capabilities open up huge opportunities.
Think about it: Tesla could become a B2B SaaS provider, offering this immense computing power to other companies. This is similar to how AWS transformed Amazon from an online retailer into a tech giant by providing cloud services. That’s the kind of potential we’re talking about here.
Basically by pushing the boundaries of AI and autonomous driving, Tesla isn’t just making cars -- they’re revolutionizing the tech sector as a whole.
This could change not just how we drive, but how we use AI in everyday life.
Energy Storage Solutions:
Tesla's innovative edge extends far beyond just AI and autonomous driving though.
Their advancements in energy storage solutions are honestly equally as impressive. Tesla’s energy products, like the Powerwall and Megapack, are changing the game for how we store and use energy.
How so? Let's get into it.
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The Powerwall is a home battery that stores solar energy for use when the sun isn’t shining, giving homeowners energy independence and reliability. Imagine never worrying about power outages because your home has a reliable energy backup.
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On a larger scale, the Megapack is designed for utility projects, helping to stabilize the grid and store renewable energy in bulk. In 2023 alone, Tesla’s energy storage deployments hit 6.5 gigawatt-hours, a 64% jump from the previous year. This growth shows not just how much demand there is but also Tesla's ability to scale its energy solutions.
Basically, Tesla’s energy storage systems are a key to the shift to renewable energy. They make the grid more resilient and efficient by storing excess energy generated during sunny or windy periods for use when production drops.
This balance helps integrate renewable sources into the power grid more effectively.
But Tesla’s energy solutions aren’t just about big projects. They’re also about helping individual homeowners and businesses become more energy-independent.
By offering scalable solutions, Tesla is decentralizing the energy grid, reducing reliance on traditional power sources, and moving us toward a more sustainable future.
Regardless of whether you believe in this or not, these innovations are a crucial part of Tesla’s mission to accelerate the world’s transition to sustainable energy.
Last but not least, Tesla’s innovation doesn’t stop at energy solutions.
The company is also making strides in robotics -- an area that could revolutionize industries and daily life. So, let’s dive into the final "sector" and show how Tesla is leading the charge in yet again another field.
Robotics:
Tesla’s leap into robotics, especially with their humanoid robot Optimus, is set to change the game in automation.
Optimus is designed to handle repetitive/dangerous tasks -- thereby boosting productivity/safety across multiple industries.
For example, imagine a robot that takes over tedious tasks like assembling parts in a factory or moving goods in a warehouse. That’s what Optimus aims to do.
What’s really exciting about Optimus is how it uses Tesla’s AI and engineering expertise. Just like their autonomous cars, these robots can learn and adapt.
This means they can be programmed for a wide range of tasks, from simple household chores to complex industrial operations. Basically Tesla is leveraging the same AI advancements that power their cars to create robots that are incredibly versatile and efficient.
And the potential markets for Optimus are huge.
Think about healthcare, where robots could help with patient care, or agriculture, where they could handle labor-intensive farming tasks. The possibilities are vast, and Tesla’s entry into this field could revolutionize how we think about productivity.
Long story short, while this is not going to happen overnight, this is something that they're actively working on. And if Elon + Tesla has shown us anything, it's that we don't want to bet against them.
Stock Outlook:
At the end of the day, Tesla is still a powerhouse in the auto industry (recent delivery numbers of 466,140 vehicles prove that).
But as we've discussed today, Tesla is so much more than just an automaker.
Their innovations in AI with the Dojo supercomputer, advancements in energy storage with the Powerwall and Megapack, and the revolutionary potential of the Optimus robot highlight their potential capabilities.
These groundbreaking developments are what make Tesla a visionary long-term investment.
While their car deliveries are impressive, it’s their strides in AI, energy, and robotics that truly set them apart and promise sustainable growth.
We remain bullish on Tesla not just because of their current successes in the auto sector but because of their commitment to leading the future of technology and energy!
We can't wait to see where they are in a few years from now.
Bonus Coverage (How to Play it):
Chances are you may be significantly more or less bullish than us.
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Price Target: $300 (25% upside)
Current Price: $240 (as of publishing)
Target Date: Q1 2025
Rating: Overweight
Long Term Risk / Reward: Medium-High / High