Tesla stock acts as replacement for Uber in legendary investor's portfolio
Yesterday at 04:20 PM
Legendary investor Brad Gerstner said that Tesla stock is the replacement for Uber shares in his portfolio because Tesla has so much upside in the self-driving race.
Bred Gerstner is the CEO and founder of Altimeter Capital, a hedge fund that manages $10.7 billion in investments. On Thursday, he appeared on CNBC to talk about several stocks, including Tesla.
Gerstner was formerly bullish on Uber shares, being one of the firm’s most notable holdings. However, AltCap sold its Uber holdings after the U.S. Presidential Election, dumping every share and putting it directly into Tesla stock, which is up over 36 percent since President-elect Donald Trump defeated Vice President Kamala Harris.
Gerstner said on CNBC:
“Let me say at the start, Dara [Khosrowshahi] has been an incredible CEO at Uber. He’s dramatically increased free cash flow, he’s increased the competitive position of that company, and they’re dominant leader now in global mobility. We love the company, and it’s inexpensive. However, leading up to the election, we’ve been taking down our position size and rotating it into Tesla. Why? Because I said before, we had a ChatGPT moment with Full Self-Driving in 2024. I think 2025 is going to be about Robotaxi. We were present at Robotaxi Day, and we were impressed by Robotaxi. For Uber, they have to get past this moment, where they have a hugely disruptive force coming in the case of Tesla and now we know that the Trump Adminsitration is going to push for a massive regulatory change, so that will be good for Waymo and good for Tesla. Uber has a few Waymos in its platform, but we want to see how it plays out.”
Gerstner added that he believes “the optics” are going to look bad for Uber in the coming months, while Tesla will benefit from CEO Elon Musk’s close relationship with President-elect Trump.
He also said he believes Tesla’s Robotaxi launch will be in Q2 of next year, which seems optimistic.
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Gerstner continued:
“I think 18 months ago, nobody would have said that this was winner take all or winner take most. They would have said everyone was going to have self-driving capabilities. I will tell you right now, Tesla is running away with their Full Self-Driving capabilities. The only other game in town really is Waymo.”
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