Altimeter Capital founder and CEO Brad Gerstner found inspiration in a pivotal moment, leading to his decision to invest in Tesla Inc TSLA stock. Gerstner’s admiration stemmed from the latest release of Tesla’s full self-driving technology, which he likened to a breakthrough akin to a “ChatGPT moment.”

Key Points: Gerstner’s affinity for contrarian views guided his excitement for Tesla amid market negativity.

Supporting founder Elon Musk’s innovative prowess, Gerstner’s investment exemplifies faith in Tesla’s resilience amid industry challenges.

Despite Tesla’s recent share price decline of 27.5% this year, Gerstner highlighted the transformative nature of Tesla’s Full Self-Driving Beta version 12 release, terming it a monumental advancement for the company.

Describing the paradigm shift in Tesla’s approach, Gerstner commended the transition to an imitation learning model, providing a driving experience that emulates human intuition unlike the deterministic models of competitors like Waymo.

Gerstner expressed optimism about Tesla’s rapid progress in the Full Self-Driving domain, emphasizing the company’s strategic shift toward innovation.

Offering insights into Tesla’s services evolution, Gerstner envisioned a potential subscription-based revenue stream, drawing parallels to Apple Inc’s evolution into a services-centric business model in the mid-2010s.

Pointing to Tesla’s unmatched advantage in data collection through its fleet of 5 million autonomous vehicles, Gerstner emphasized the formidable lead the company holds over traditional automakers in AI and autonomous technology.

Acknowledging risks, including soft sales in China and potential delivery shortfalls, Gerstner emphasized the need for investors to weather market fluctuations and stay committed to Tesla’s long-term vision.

In closing, Gerstner lauded Musk’s pioneering AI initiatives in the automotive sector, portraying investment in Tesla as a logical choice amidst evolving technological landscapes.

TSLA Price Performance: At the time of writing, Tesla shares had surged by 1.27% to $179.92.

Photo: courtesy of Tesla.