Summary
- Brad Gerstner, CEO of Altimeter Capital, replaced Uber shares in his portfolio with Tesla due to self-driving race upside
- Altimeter Capital sold all Uber shares after the US Presidential Election, putting funds into Tesla stock
- Gerstner believes Tesla will benefit from Trump administration regulations and Musk’s relationship with Trump
- Gerstner predicts Tesla’s Robotaxi launch in Q2 of next year
- Gerstner sees Tesla as the clear leader in Full Self-Driving capabilities, with Waymo being the main competitor
Article
Brad Gerstner, the CEO and founder of Altimeter Capital, recently appeared on CNBC and discussed his decision to replace Uber shares in his portfolio with Tesla stock. Gerstner, who manages a hedge fund with $10.7 billion in investments, was previously bullish on Uber but sold all of the firm’s shares following the U.S. Presidential Election. He cited Tesla’s significant upside in the self-driving race as the reason for the switch, with Tesla stock rising over 36 percent since the election.
Gerstner praised Uber CEO Dara Khosrowshahi for his leadership in increasing free cash flow and strengthening the company’s competitive position in global mobility. However, he highlighted Tesla’s innovations in Full Self-Driving technology, predicting a Robotaxi launch in Q2 of next year. Gerstner emphasized that Tesla’s advancements in self-driving capabilities have positioned the company as a dominant player in the industry, with Waymo being the only other significant competitor.
According to Gerstner, the Trump Administration’s support for regulatory changes is expected to benefit Tesla and Waymo, posing a significant challenge for Uber in the future. He mentioned that the optics for Uber may not be favorable in the coming months, particularly in comparison to Tesla’s strong performance and its CEO Elon Musk’s close relationship with President-elect Trump. Gerstner highlighted the potential for Tesla to continue its success in the self-driving space, predicting a positive outlook for the company.
Gerstner expressed confidence in Tesla’s ability to lead the self-driving race, highlighting the company’s progress in developing Full Self-Driving capabilities. He noted that Tesla’s focus on automation and innovation sets it apart from other competitors in the market. Gerstner’s decision to shift investment from Uber to Tesla reflects his belief in Tesla’s growth potential and its position as a key player in the future of autonomous vehicles.
As Tesla continues to enhance its self-driving technology and approaches the launch of Robotaxi services, investors like Brad Gerstner are optimistic about the company’s future prospects. The shift in focus from Uber to Tesla reflects a broader trend in the market towards companies leading the way in autonomous driving technology. With Tesla’s strong performance and innovative approach, it is positioned to benefit from regulatory changes and market developments in the coming years.
Overall, Brad Gerstner’s decision to replace Uber shares with Tesla stock in his portfolio underscores the growing importance of self-driving technology in the investment landscape. Tesla’s advancements in Full Self-Driving capabilities and potential for launching Robotaxi services have positioned the company as a frontrunner in the industry. As the competition intensifies and regulatory changes support autonomous driving initiatives, Tesla stands out as a key player with significant growth potential for investors like Gerstner.
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