Financial Maven Seizes Opportunity
Altimeter Capital’s Brad Gerstner plunges into Tesla stock following a transformative ‘ChatGPT moment’ spurred by the firm’s latest Full Self-Driving release. The move comes amidst a tumultuous climate for EV stocks but Gerstner sees the silver lining in Tesla’s innovation.
Betting on Radical Innovation
Gerstner’s reasoning is rooted in his faith in founder Elon Musk’s visionary leadership. Tesla has encountered turbulence as demand wanes industry-wide, leading to pricing conflicts and margin erosion. Despite a 27.5% slump in Tesla’s stock price this year, Gerstner’s confidence remains unshaken.
The Turning Point in Autonomous Driving
Gerstner identifies Tesla’s Version 12 Full Self-Driving Beta system as a game-changer. The switch to an imitation learning model has amazed Gerstner, likening it to the sensation of ‘a human driving the car’ rather than a traditional deterministic approach. Tesla’s strides in Full Self-Driving development are accelerating, leaving competitors like Waymo in the rearview mirror.
Services Revolution on the Horizon
Tesla’s offer of a complimentary one-month Full Self-Driving subscription to U.S. customers is a strategic move to showcase the system’s potential. By mandating test drives and potentially converting testers into paying subscribers, Tesla could transition into a services-oriented business akin to Apple’s evolution in 2015-2016.
Bold Bets on Elon Musk’s AI Prowess
Gerstner highlights the unparalleled advantage of Tesla’s fleet of 5 million data-collecting vehicles, underpinning its AI advancements. The disruptive potential of Tesla’s AI and vehicle model convergence presents a lucrative opportunity that is challenging for traditional OEMs to emulate.
Caution Amidst Optimism
Gerstner acknowledges risks, such as weak sales in China and the looming possibility of missing delivery targets. However, he asserts that investing in Tesla demands resilience, with an appetite for purchasing on market downturns. The bet on Elon Musk and Tesla’s AI dominance seems like a logical step in the era of artificial intelligence.
Navigating Market Shifts
Reflecting on historical parallels with Apple’s services metamorphosis, Gerstner sees Tesla as poised for a similar trajectory. Despite challenges in the supply chain, Tesla’s stock price surged 1.27% to $179.92 as anticipation builds around the Full Self-Driving subscription model’s potential.