Core Viewpoint - The article discusses Elon Musk's proposal to utilize the computational power of idle Tesla vehicles for distributed AI inference workloads, potentially creating a massive distributed inference fleet that could reach up to 100 gigawatts of inference capacity if the fleet scales to tens of millions or even a hundred million vehicles [2]. Group 1: AI and Vehicle Technology - Tesla has equipped its electric vehicles with AI accelerators necessary for various autonomous driving features, including Full Self-Driving (FSD) capabilities [2]. - Since 2019, Tesla has been using its own chips, which reportedly outperform NVIDIA GPUs by 21 times, with the first chip named HW3 capable of processing 720 trillion operations per second [3]. - The latest HW4 chip, launched in January 2023, is built on a 7-nanometer process and offers a performance improvement of 3 to 8 times over its predecessor, powering Tesla's AI4 architecture [3]. Group 2: In-Vehicle Computing Power - Tesla's latest vehicle infotainment systems are equipped with powerful computing capabilities, featuring AMD Ryzen processors and independent AMD Navi 23 GPUs, achieving performance levels of up to 10 TFLOPS, comparable to top gaming systems [4].

Investment Rating - The report maintains an "Accumulate-A" rating for the company [2] Core Views - The company reported a revenue of 430 million yuan in the first half of 2025, representing a year-on-year growth of 5.9%, but the net profit attributable to the parent company decreased by 48.2% to 30 million yuan [4] - The decline in performance is attributed to a decrease in telecom transmission demand and insufficient release of DCI capacity [5] - The company is expected to accelerate the release of DCI capacity in the second half of the year, with projections for net profits of 90 million, 290 million, and 590 million yuan for 2025, 2026, and 2027 respectively [8] Financial Performance - The company achieved a gross margin of 26.3% in the first half of 2025, down 5.2 percentage points year-on-year [4] - The revenue from the transmission product line was 330 million yuan, a year-on-year decrease of 7.9%, while the access and data product lines saw a significant increase of 104.7% to 100 million yuan [5] - The projected revenue for 2025 is 1.177 billion yuan, with a year-on-year growth of 39.9% [10] Market Trends - The global DCI market is expected to reach over 40 billion USD in 2025, growing by 14.3% year-on-year, driven by increased demand for data center connectivity and distributed training [6] - The company has received sample orders for its silicon-based OCS optical switch, indicating potential for future mass production [7] Profitability Forecast - The report forecasts a decline in net profit for 2025, with a projected net profit margin of 7.6% [10] - The company's earnings per share (EPS) for 2025 is estimated at 0.57 yuan, with a price-to-earnings (P/E) ratio of 247.3 [10]