Tesla shares soar 10% after Morgan Stanley upgrade

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2 years ago

September 11, 2023

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SHANGHAI, CHINA – SEPTEMBER 06: Aerial view of Tesla vehicles waiting to be loaded on board a roll-on-roll-off cargo vessel at Nangang port on September 6, 2023 in Shanghai, China. (Photo by VCG/VCG via Getty Images)

Vcg | Visual China Group | Getty Images

Tesla shares rose more than 10% Monday after a Morgan Stanley upgrade, and optimistic note that envisioned Tesla selling AI technology to other automakers, and saving money by using its own GPUs as much as possible, rather than paying for chip supply from Nvidia.

Morgan Stanley analysts argued that Tesla should be viewed as a tech company as much as an electric car maker. The firm set its new price target at $400 for shares of Tesla, up from a previous price target of $250, as of Monday emphasizing the potential of Tesla’s Dojo supercomputer project and custom silicon. Morgan Stanley believes Dojo could theoretically add up to $500 billion to the company’s value long-term.

CEO Elon Musk said in July this year said Tesla planned to spend more than $1 billion on Dojo by the end of 2024. Tesla is developing Dojo to help with AI machine learning and computer vision training purposes for its cars and nascent robotics effort. Among other things, Tesla uses video clips and data from its customers’ vehicles to improve existing software, and develop new features.

Highly bullish Tesla analyst Adam Jonas wrote in his note on Monday, “Although Dojo is still early in its development, we believe that its applications long-term can extend beyond the auto industry. Dojo is designed to process visual data which can lay the foundation for vision-based AI models such as robotics, healthcare and security. In our view, once Tesla makes headway on autonomy and software, third party Dojo services can offer investors the next leg of Tesla’s growth story.”

Morgan Stanley also expects Tesla to be able to generate $2,160 in recurring revenue every month from its vehicle owners in 2030, from services enabled by Dojo and subscription software in cars like self-driving systems, which Tesla does not offer today, vehicle charging services, maintenance, software upgrades, content and others to be developed in the future.

Elon Musk promised a Tesla would complete a self driving cross-country demo without any human intervention by the end of 2017. Tesla vehicles still only offer advanced driver assistance systems, which require a human behind the wheel, ready to steer or brake at any second.

By contrast, another firm that is bullish on Tesla, Deutsche Bank, noted risks to the EV maker in Q3 from “planned summer production shutdowns which will push both production and deliveries down QoQ, discounts on inventories, and limited positive costs offsets in the quarter,” and set a price target at $300 in a note out September 6.

Earlier this quarter, Tesla slashed the prices of its electric vehicles after executives cautioned investors on the company’s last earnings call that production and delivery volumes would likely decline this period versus the second quarter due to planned factory closures.

Tesla also cut the price to purchase its premium driver assistance system, marketed in the U.S. under the Full Self-Driving or FSD brand name, from $15,000 to $12,000. Those price cuts, among other things, had weighed on Tesla’s share price in recent weeks. But after the Morgan Stanley note on Monday, Tesla shares spiked above $272 mid-day.

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How black boxes became key to solving airplane crashes

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9 hours ago

November 30, 2025

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How black boxes became key to solving airplane crashes

After the search for survivors and recovery of victims in tragic aviation accidents — like that of a UPS cargo plane shortly after takeoff from Louisville Muhammad Ali International Airport in Kentucky last month — comes the search for flight data and a cockpit voice recorder often called the “black box.”

Every commercial plane has them. Aerospace giants GE Aerospace and Honeywell are among a few companies that design them to be nearly indestructible so they can help investigators understand the cause of a crash.

“They’re very crucial because it’s one of the few sources of information that tells us what happened leading up to the accident,” said Chris Babcock, branch chief of the vehicle recorder division at the National Transportation Safety Board. “We can get a lot of information from parts and from the airplane.”

Commercial aircraft have become very complex. A Boeing 787 Dreamliner records thousands of different pieces of information. In the case of the Air India crash in June, data revealed both engine fuel switches were put into a cutoff position within one second of each other. A voice recording from inside the cockpit captured the pilots discussing the cutoffs.

“All of those parameters today can have a very huge impact on the investigation,” said former NTSB member John Goglia. “It’s our goal to to provide information back to our investigators who are on scene as quick as we can to help move the investigation forward.”

This crucial data can also help prevent future accidents. A crash can cost airlines or plane manufacturers hundreds of millions of dollars and leave victims’ families with a lifetime of grief.

But in some circumstances black boxes were destroyed or never found. Experts say further developments such as cockpit video recorders and real-time data streaming are needed.

“The technology is there. Crash worthy cockpit video recorders are already being installed in a lot of helicopters and other types of airplanes, but they’re not required,” said Jeff Guzzetti, aviation analyst and former accident investigator for the Federal Aviation Administration and NTSB. “There’s privacy and cost issues involving cockpit video recorders but the NTSB has been recommending that the FAA require them for years now.”

Watch the video to learn more.

— CNBC’s Leslie Josephs contributed to this report.

Technology

Stocks end November with mixed results despite a strong Thanksgiving week rally

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2 days ago

November 28, 2025

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Stocks end November with mixed results despite a strong Thanksgiving week rally

Technology

Palantir has worst month in two years as AI stocks sell off

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2 days ago

November 28, 2025

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Palantir has worst month in two years as AI stocks sell off

CEO of Palantir Technologies Alex Karp attends the Pennsylvania Energy and Innovation Summit, at Carnegie Mellon University in Pittsburgh, Pennsylvania, U.S., July 15, 2025.

Nathan Howard | Reuters

It’s been a tough November for Palantir.

Shares of the software analytics provider dropped 16% for their worst month since August 2023 as investors dumped AI stocks due to valuation fears. Meanwhile, famed investor Michael Burry doubled down on the artificial intelligence trade and bet against the company.

Palantir started November off on a high note.

The Denver-based company topped Wall Street’s third-quarter earnings and revenue expectations. Palantir also posted its second-straight $1 billion revenue quarter, but high valuation concerns contributed to a post-print selloff.

In a note to clients, Jefferies analysts called Palantir’s valuation “extreme” and argued investors would find better risk-reward in AI names such as Microsoft and Snowflake. Analysts at RBC Capital Markets raised concerns about the company’s “increasingly concentrated growth profile,” while Deutsche Bank called the valuation “very difficult to wrap our heads around.”

Adding fuel to the post-earnings selloff was the revelation that Burry is betting against Palantir and AI chipmaker Nvidia. Burry, who is widely known for predicting the housing crisis that occurred in 2008 and the portrayal of him in the film “The Big Short,” later accused hyperscalers of artificially boosting earnings.

Palantir CEO Alex Karp vocally hit the front lines, appearing twice in one week on CNBC, where he accused Burry of “market manipulation” and called the investor’s actions “egregious.”

“The idea that chips and ontology is what you want to short is bats— crazy,” Karp told CNBC’s “Squawk Box.”

Despite the vicious selloff, Palantir has notched some deal wins this month. That included a multiyear contract with consulting firm PwC to speed up AI adoption in the U.K. and a deal with aircraft engine maintenance company FTAI.

But those announcements did little to shake off valuation worries that have haunted all AI-tied companies in November.

Across the board, investors have viciously ditched the high-priced group, citing fears of stretched valuations and a bubble.

In November, Nvidia pulled back more than 12%, while Microsoft and Amazon dropped about 5% each. Quantum computing names such as Rigetti Computing and D-Wave Quantum have shed more than a third of their value.

Apple and Alphabet were the only Magnificent 7 stocks to end the month with gains.

Sill, questions linger over Palantir’s valuation, and those worries aren’t a new concern.

Even after its steep price drop, the company’s stock trades at 233 times forward earnings. By comparison, Nvidia and Alphabet traded at about 38 times and 30 times, respectively, at Friday’s close.

Karp, who has long defended the company, didn’t miss an opportunity to clap back at his critics, arguing in a letter to shareholders that the company is making it feasible for everyday investors to attain rates of return once “limited to the most successful venture capitalists in Palo Alto.”

“Please turn on the conventional television and see how unhappy those that didn’t invest in us are,” Karp said during an earnings call. “Enjoy, get some popcorn. They’re crying. We are every day making this company better, and we’re doing it for this nation, for allied countries.”

Palantir declined to comment for this story.

WATCH: Palantir CEO Alex Karp: We’ve printed venture results for the average American