We recently published a list of 7 new stock picks in Brad Gerstner’s portfolio. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other stock picks in Brad Gerstner’s portfolio.
Gerstner Expects More M&As in New Term
Strategists and investors are confident that the new administration will fuel the state of mergers and acquisitions in the United States. It is no surprise that renowned investor Brad Gerstner, founder and CEO of Altimeter Capital, believes the same. On November 6, Gerstner appeared in an interview on CNBC Television where he shared his expectations of the stock market.
Gerstner shares that the Republicans have been particularly critical of big tech companies and their “bundling powers” that happen to “crowd out startups” and “stifle innovation and startups.” He expects the new administration to scrutinize this trend heavily. He also adds that the true beauty of Silicon Valley lies in the innovation and technology bolstered by small tech and mergers and acquisitions.
Speaking of big tech, he suggests that these names have been cutting down on M&A deals and have instead directed their resources to stock repurchases, dividends, and onboarding new GPUs. He expects the new administration to alter the trend and loosen up the ability to do mergers and acquisitions.
Gertsner also suggests that the US market will be better off with a functioning mergers and acquisitions flow in Silicon Valley, which he refers to as the “heartbeat” of the place. He also shared his thoughts on the program, Invest America, which is expected to provide kids with $1,000 in seed money into investment accounts as soon as they are born. He has been working with leading lawmakers in the country to promote the program and is highly optimistic about its outcomes.
Gerstner is bullish on the program and highlighted that the move will bring a new era of enterprise, innovation, and capital management to the US economy. He added that this program will bolster the private market and likely create 3.7 million new stock market investors yearly. In addition to investors like Brad Gerstner, many large tech companies are on board with the program.
Brad Gerstner is one of the top technology investors and has had many notable transactions over the past few years through his firm. He is bullish on tech and innovation, particularly artificial intelligence. In Q3 2024, he initiated 8 new positions and also raised his stakes in 7 stocks, ending the quarter with a portfolio of $6.75 billion in 13F securities. With that, let’s discuss his top new picks as of Q3 2024.
Our Methodology
We scanned Altimeter Capital’s Q3 2024 portfolio and picked new additions from the fund’s top 13F holdings. Additionally, we’ve also added overall hedge fund sentiment, as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Tesla, Inc. (NASDAQ:TSLA)
Altimeter Capital’s Stake Value: $173,303,712
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company specializing in producing electric cars and solar-integrated renewable energy solutions. The company is one of the largest EV manufacturers in the United States and is a new addition to Brad Gerstner’s portfolio.
In the third quarter of 2024, Tesla, Inc. (NASDAQ:TSLA) logged revenue worth $20.02 in automotive revenues. Previously, Tesla, Inc. (NASDAQ:TSLA) launched a new lineup of electric vehicles to boost the launch of new models. Its latest lineup and extensive production line will deliver over 3 million cars of capacity at full optimization.
Tesla, Inc. (NASDAQ:TSLA) is one of Brad’s favorite stocks, and he attributes his likeliness to the level of innovation the stock exhibits. He also believes that “2025 will be Tesla’s ChatGPT year.” He previously appeared on CNBC in May where he emphasized Tesla’s groundbreaking technology and how it is highly challenging to replicate. More recently, on November 21, he again joined CNBC emphasizing that the year 2025 will be the year for Tesla’s Robotaxi. He also added that with the new administration in play, the optics for Uber are going to be extremely tough, and quite the opposite will be the case for Tesla.
Overall, Gerstner is extremely bullish on Tesla because of its disruptive technology. 99 hedge funds were bullish on the stock at the end of Q3 2024, according to Insider Monkey’s database.
Overall, TSLA ranks 1st on our list of new stock picks in Brad Gerstner’s portfolio. While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.