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Altimeter Capital’s\u00a0Brad Gerstner<\/strong>\u00a0has announced a new position in\u00a0Tesla Inc<\/strong> TSLA<\/span>.<\/p>\n What To Know:<\/strong> Gerstner was bearish on\u00a0Tesla\u00a0in 2019 and 2020 on concerns Elon Musk’s<\/strong>\u00a0EV business was undercapitalized and could be heading for bankruptcy.<\/p>\n “Fast forward two years. The world has changed dramatically,” Gerstner said Thursday on CNBC’s “Fast Money Halftime Report.”<\/p>\n Undercapitalization is no longer a concern and bankruptcy is completely off the table, he said, adding that there\u00a0are two other contributing factors to consider.<\/p>\n First, the world is moving to\u00a0wholesale as a result of geopolitical and energy realities we are currently facing, he said. Such has caused a shift toward electrification, but only about\u00a08% of the market is being reached, he said.\u00a0<\/p>\n “That eight percent\u00a0penetration is going to expand probably at a CAGR of 30 to 40 percent over the next five to 10\u00a0years,” Gerstner said.<\/p>\n Furthermore, governments around the globe\u00a0are\u00a0supporting electrification efforts whether it be\u00a0through investments in battery technologies or adding charging stations or passing legislation that supports the transition to electric, he said.<\/p>\n So Why Tesla?<\/strong>\u00a0Gerstner believes Tesla is well ahead of the competition in the space.\u00a0<\/p>\n “They have 30% margins. Their competitors are running 10 percent at best, and I think they have a compounding advantage in the world,” he said.<\/p>\n Although Altimeter Capital expects Tesla’s market share to remain steady at around 15%, that’s 15% of a “massively growing market,” Gerstner said:\u00a0“And we think they are going to be a much larger percentage of the profit pool in electric vehicles, in energy storage,\u00a0et cetera.”<\/p>\n He compared Tesla to Apple Inc<\/strong> AAPL<\/span>, which represents\u00a0a large portion of the\u00a0profit pool in its space, but has a much smaller share of actual units sold, he said.\u00a0<\/p>\n “We think Tesla is following that playbook and, you know, they’ve built a company that frankly, is extending its moat and extending its lead versus the OEMs, who are saddled with a bunch of ICE legacy,” Gerstner said.<\/p>\n See Also:\u00a0Tesla Vs. Fisker Vs. Rivian Vs. Lucid: Analyst Weighs In On EV Makers As Adoption Shifts To Top Gear<\/a><\/em><\/p>\n