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Tue, May 6, 2025, 10:06 AM 2 min read
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Well-known investor Brad Gerstner reported on CNBC recently that he had "reduced" his stake in TSLA.
However, he added that the EV maker had "done an unbelievable job" dealing with its macro challenges. Further, Gerstner continues to be very impressed by the company's autonomous-driving technology.
Brad Gerstner is the founder and CEO of Altimeter Capital, a tech-focused hedge firm.
Brad Gerstner of Altimeter Capital
Why Gerstner Sold TSLA Stock
The hedge-fund manager said that he had lowered his position in TSLA due to "macro risk." Gerstner indicated that he had sold portions of all of his stocks due to the same issue.
However, the investor noted that the extent of his risk allocation was back up to a six or seven out of ten, up from one out of ten earlier in 2025. However, at the beginning of the year, the metric had reached a ten.
TSLA's Challenges and Strengths
Tesla is facing challenges from tariffs and the U.S.-China trade standoff, Gerstner stated, adding that TSLA's current position is "tricky."
But on the other hand, the investor asserted that TSLA "probably (has) the best full self driving technology in the world."
And he added that "one of the biggest transitions of the next five to ten years will be the multi trillion dollar transition to autonomous driving."
While we acknowledge the potential of TSLA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey
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