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· Posted on
February 21, 2024

Tesla has found its new mojo - Dojo - and this baby could add $500 billion to its market value

Tesla's super computer called Dojo could add $500 billion USD to the company's market value.

What's the key learning?

  • Dojo has been designed to handle massive amounts of data to help with training of all driving systems.
  • Investment bank Morgan Stanley reckons that Dojo may add $500 billion USD to Tesla's market value because it's opening up new addressable markets for Tesla.
  • The addressable market, also known as the Total  Addressable Market (TAM), is essentially the revenue opportunity available for a product or service.

👉 Background: Tesla needs no introduction, and neither does its zany, Twitter-rambling founder Elon Musk. Since 2021, Tesla has been working on a super computer called Dojo.

👉 What happened: Dojo has been designed to handle massive amounts of data to help with training of all driving systems. That could be self-driving cars, robotaxis, and other autonomous networks that are required.

👉 What else: Now, investment bank Morgan Stanley reckons that Dojo may add $500 billion USD to Tesla's market value because it's opening up new addressable markets for Tesla.

What's the key learning?

💡The addressable market, also known as the Total  Addressable Market (TAM), is essentially the revenue opportunity available for a product or service.

💡If a company wants to grow its revenue, it has two main paths:

  • Path 1: It can expand its share of the existing addressable market — which means gaining a larger slice of the pie.
  • Path 2: It can expand the total addressable market — in other words, make the pie itself bigger.

💡Take Amazon, for example. It was an online retailer specialising in books. But then, they launched Amazon Web Services (AWS) ,the cloud computing service. Today, AWS generates over $21 billion USD a quarter — or more than14% of total Amazon revenue.

‍

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