Altimeter Capital purchased 156,670 shares of Tesla (NASDAQ: TSLA) in Q4, making it the hedge fund’s ninth-largest holding among its 11-company portfolio.
Altimeter Capital, spearheaded by its founder Brad Gerstner, has revealed its fresh investment in Tesla (TSLA). The hedge fund has procured 156,670 shares of Tesla during the fourth quarter of 2023. This investment lifted the EV giant to ninth place in Altimeter’s portfolio, which consists of 11 holdings.
This move marks a noteworthy shift for Altimeter, considering its history with Tesla. Previously, the fund purchased 173,000 shares of TSLA in Q3 2022, only to divest its entire position the following quarter.
In 2022, Gerstner said,
“While we expect their share will stay at around 15% as we move forward, that’s 15% in a massively growing market and we think they are going to be a much larger percentage of the profit pool in electric vehicles, in energy storage, etc.”
He also anticipated a robust growth trajectory for the electric vehicle market, projecting a 30% to 40% expansion over the next decade.
In 2019 and 2020, Gerstner held a bearish stance on TSLA, citing concerns about undercapitalization and potential bankruptcy. However, his perspective shifted as government backing for electric vehicles increased and Tesla’s superior margins compared to rivals became apparent.
Institutional Sentiment on TSLA
Morgan Stanley analyst Adam Jonas suggests that institutional investors foresee a period of underperformance for TSLA stock in the upcoming six to 12 months. This assessment stems from Jonas’ observations following the Tesla “bull/bear” lunch event hosted by Morgan Stanley.
“We expected bearishness from institutional investors given recent negative sentiment on the name. But there was barely any attempt to argue for a near-term bull case.”
Jonas maintains an “overweight” rating on TSLA stock with a price target of $345, underscoring his belief in the company’s multifaceted value proposition encompassing technology, energy, robotics, and artificial intelligence.
Tesla (NASDAQ: TSLA) Stock Performance
TSLA stock dipped 0.25% to close at $199.95 on Friday. The traders had exchanged hands with 110,704,925 (110.70 million) shares compared to the average daily trading volume of 112.78 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
