Tesla is reviving its Dojo3 supercomputer project after a strategic reversal by CEO Elon Musk. The AI chip project is crucial for training autonomous driving models and FSD technology. Musk envisions the project expanding to space-based AI compute, aligning with industry trends. Investors are questioning Tesla’s direction and competitive position in AI infrastructure.

While TSLA stock is down 15% from all-time highs, the supercomputer could drive future revenue growth. Tesla faces challenges from rising interest rates, competition, and slowing consumer demand. The company’s gross margins are forecast to decrease to 17% in 2025, impacting free cash flow. Q4 earnings will be a key driver for stock performance.

Tesla delivered a record-breaking third quarter with strong momentum across all business lines. The company reported significant free cash flow and ended the quarter with over $41 billion in cash and investments. Deliveries surged globally, driven by the refreshed Model Y lineup. Energy storage business posted record deployments and margins.

Musk expressed confidence in achieving full self-driving capability and plans to expand Robotaxi operations. Progress on the AI5 chip promises significant performance improvements. Tesla aims to expand production capacity and invest in ambitious AI initiatives, including the Optimus humanoid robot program. Analysts forecast revenue and earnings growth for the company.

Analysts have mixed recommendations on TSLA stock, with a price target below the current value. Tesla’s strategic initiatives and financial performance will be closely watched by investors. The company’s ambitious plans for AI technology and vehicle production expansion could shape its future trajectory.

Read more at Yahoo Finance: Tesla Just Revived Its Dojo3 Supercomputer. Does That Make TSLA Stock a Buy Here?