This article first appeared on GuruFocus.
Tesla (TSLA, Financials) may be entering another defining stretch as Morgan Stanley analysts highlighted several developments likely to influence the stock over the next 6 to 12 months, following the company’s recent annual meeting.
While shareholders approved CEO Elon Musk’s $1 trillion compensation plan, analyst Adam Jonas said Tesla’s unresolved investment in xAI remains a major strategic issue. They’re gonna have to revisit this, Jonas wrote, describing Tesla’s relationship with xAI as deterministic to the company’s long-term success, given its ties to data, software, and manufacturing integration.
Jonas also underscored Musk’s remarks about Full Self-Driving technology, including his claim that version 14.3 could allow drivers to text while driving. The analyst called the milestone a potential steam engine moment for the auto industry as Tesla pushes toward algorithm-driven vehicle control.
Musk’s suggestion that Tesla may build a gigantic chip fab also caught investor attention. Morgan Stanley said such a move could help the company secure chip supply and accelerate innovation across its robotics and AI platforms.
Looking further ahead, Jonas pointed to Musk’s vision of a global distributed inference cloud, where idle Teslas could perform AI workloads, effectively transforming parked vehicles into connected computing nodes. The analyst said the idea could evolve into tens of billions of Blackwell-equivalent inference computers at the edge, forming a vast, low-latency network.
Source: finance.yahoo.com
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