Tesla  (TSLA) – Get Free Report shares moved firmly higher Monday following an upgrade from top Wall Street analyst Adam Jonas tied to the potential of automaker’s ‘DoJo’ supercomputer.

Morgan Stanley analyst Adam Jonas added 60% to his previous Tesla price target, boosting it to $400 per share, the highest on Wall Street, and lifted his rating to ‘overweight’ from ‘equal-weight’ based on the assumption that the DoJo supercomputer could add half a billion to Tesla’s market value “through a faster adoption rate in Mobility (robotaxi) and Network Services (SaaS).

Tesla CEO Elon Musk has said DoJo, powered by artificial intelligence, will not only support his own company’s drive towards autonomy, which he has identified as the key to future profitability, but also the company’s ability to license its full-self driving technology to major automotive rivals.

Tesla now has data based on around 300 million miles of driving, a figure Musk said will “soon be billions of miles and tens of billions of miles”, providing a huge competitive advantage for the company as it ramps-up investments in Ai and other technologies to harness its potential.

“The autonomous car has been described as the mother of all AI projects. In its quest to solve for autonomy, Tesla has developed an advanced supercomputing architecture that pushes new boundaries in custom silicon and may put Tesla at an asymmetric advantage in a $10 million (total addressable) market.”

Tesla shares were marked 5.3% higher in pre-market trading to indicate a Monday opening bell price of $261.70 each.

Gene Munster, an analyst at Deepwater Asset Management and a long-time Tesla bull, thinks the licensing of FSD technology could generate as much as $20 billion in annual revenue within five years of the first agreement. A 10% market share should generate $100 billion in operating income, Munster said.

“If Tesla is successful at landing one OEM, the likelihood that other car makers jump on board is high. It would be a similar dynamic we’ve seen over the past month as seven car makers have signed up to use Tesla’s charging network,” Munster said.

“If Tesla is successful at landing one OEM, the likelihood that other car makers jump on board is high. It would be a similar dynamic we’ve seen over the past month as seven car makers have signed up to use Tesla’s charging network,” Munster said.

Musk, for his part, isn’t prepared to wait much longer, even as he described himself as “the boy who cried FSD” by over-promising and under-delivering on its potential.

“I’ve been wrong in the past. I may be wrong this time (but) I think we’ll be better than human by the end of this year,” Musk said. “We see a clear path to full self-driving being 10 times safer than the average human driver.”

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