Seeing the Positives Amidst Negativity
Altimeter Capital founder and CEO Brad Gerstner recently made a bold move by investing in Tesla Inc (TSLA) stock following a unique “ChatGPT moment” with the company’s latest full self-driving release.
A Fresh Perspective on Tesla’s Future
Despite Tesla shares facing selling pressure and a 27.5% decline since the start of the year due to challenges in the EV industry, Gerstner remains optimistic. He highlighted Tesla’s innovative version 12 launch of its Full Self-Driving Beta system, likening it to a significant breakthrough.
Shifting Gears Towards Imitation Learning
Gerstner praised Tesla’s shift from deterministic models to an imitation learning model, comparing it favorably to competitors like Waymo. He pointed out that Tesla’s Full Self-Driving Beta system now offers a driving experience that “feels like a human driving the car,” signifying massive progress in autonomous driving technology.
A New Services Opportunity for Tesla
Gerstner highlighted Tesla’s move towards offering a free one-month subscription to its Full Self-Driving Beta system for U.S. customers, emphasizing the potential shift towards a services-based business model akin to Apple Inc’s transition in the mid-2010s. He noted the unique advantage Tesla holds in data collection and AI training through its network of robot cars.
Weighing the Risks
While acknowledging risks such as soft sales in China and potential delivery number misses in March, Gerstner urged investors to approach Tesla stock with caution, advising readiness to purchase more during market downturns. However, he expressed confidence in Elon Musk’s leadership and Tesla’s AI advancements as compelling reasons to consider investing in the company.
Market Response
At the time of writing, Tesla shares were up 1.27% at $179.92, reflecting the initial positive market response to Gerstner’s outlook on the company.
Photo: courtesy of Tesla.
