The Genesis of a Bold Move
Altimeter Capital founder and CEO Brad Gerstner recently made a strategic shift by acquiring Tesla Inc (TSLA) stock, influenced by what he described as a transformative ‘ChatGPT moment’ with the EV giant’s latest full self-driving release. Gerstner’s bold move reflects his contrarian philosophy – when pessimism pervades, his excitement surges.
The Road Less Traveled
Despite headwinds facing Tesla, with stock down 27.5% this year amid industry challenges, Gerstner’s outlook is characterized by a beacon of optimism. He singled out Tesla CEO Elon Musk’s unparalleled leadership as a pivotal factor in his investment decision, lauding Musk as an extraordinary product visionary.
A Leap Forward
The pivotal aspect under Gerstner’s lens is Tesla’s version 12 launch of its Full Self-Driving Beta system – a moment he likened to a breakthrough ‘ChatGPT moment’ for the company. Transitioning from deterministic models to an imitation learning model, Tesla’s technology now offers an experience akin to human driving, setting it apart from competitors like Waymo.
Uncharted Territory
By delving into the subscription-based Full Self-Driving service and leveraging a vast network of 5 million data-collecting cars, Gerstner envisions a transformative shift for Tesla akin to Apple’s evolution into a services powerhouse in 2015. The unique services opportunity presented by Tesla’s AI-driven approach is deemed near-impossible for competitors to replicate.
Weathering the Storm
While Gerstner is optimistic about the future, he remains mindful of risks such as soft sales in China and the potential for Tesla to miss delivery targets. He acknowledges the volatile nature of the market and advises prospective investors to brace for fluctuations, emphasizing the need to capitalize on opportunities during weakness.
Photo: courtesy of Tesla.
