Analysts at Global Equities Research have shared harsh criticism of the way Tesla (NASDAQ:TSLA) is running its Dojo AI project, the company's own supercomputer designed to train machine learning models used in Tesla's autopilot software.
In their latest note, the analysts were not shy for words when describing the current state of Dojo, noting that the team appears "in excited state with no direction or objective" and "the problems with Dojo AI are plenty, and it will take a whole day to list them," even saying that in current shape the project 'has "Zero" Chance of succeeding.'
Analysts believe "the only way Dojo AI can succeed is by running it as a Separate Business Unit, with its own CEO," and suggests Tesla should tap Jim Whitehurst, former CEO of RedHat, for the job, as "there are only 2 companies who have successfully invented Software Business Models: MSFT and RedHat."
They see the need to reorganize the Dojo unit as a '"Professional Open Source Company" - just like RedHat was run under CEO Jim Whitehurst,' and develop the business by creating 'services designed along the RedHat pattern.'
The analysts conclude with a warning: "If investors don't see an immediate course correction in Dojo AI, sadly Investors will have to remove Dojo AI from their investment thesis on TSLA."
Shares of TSLA are mostly flat on Monday morning, trading around the prior closing price of $165.08.