Tesla will become a $2 trillion company, says billionaire and Tesla shareholder Ron Baron

Ron Baron, founder of Baron Capital, is a Tesla shareholder and a big believer in Elon Musk’s vision of the future. Baron believes Tesla can grow sales to $1 trillion in 12 years. 

Anjali Sundaram | CNBC

Billionaire investor Ron Baron believes Tesla will be a $2 trillion company following shares of the Silicon Valley automaker surging more than 400% this year.

Baron, a longstanding Tesla supporter and shareholder, said Wednesday morning on “Squawk Box” that he believes Tesla’s vehicle sales will grow 50% annually in the coming years. Tesla’s current market cap is $416.2 million.

“We’re very excited about that,” he said.

Baron’s eponymous investment firm, with $39.9 billion in assets under management, holds more than 7.3 million Tesla shares as of Sept. 30. They were purchased at an average cost per share of $43.07, according to the firm. It has made about 10 times its money in investing in Tesla.

“I’ve said for a long time, I thought it was going to be $1 [trillion] to $2 trillion. With what developments have taken place recently, I think $2 trillion is the right number. So I think it’s five times from here,” Baron said.

Shares of Tesla are up more than 400% this year through Tuesday’s close. The stock begin trading on a split-adjusted basis on Aug. 31 following a five-for-one stock split.

Tesla shares have been volatile since Baron invested in the Silicon Valley automaker. He described it as going “up and down like a yo-yo.”

At Tesla’s 2020 shareholder’s meeting last month, Tesla CEO Elon Musk said the company’s vehicle deliveries in 2020 would be up 30% to 40% from last year, a range consistent with its previous prediction of 500,000 cars delivered this year.

Musk also predicted the company will be able to make a $25,000 full self-driving car within three years.

The annual meeting occurred with Tesla’s highly anticipated “Battery Day” on Sept. 22. Many on the Street were left disappointed by the multi-year timeline for the improvements to be realized in the company’s batteries, as well as the lack of concrete goals.

The firm also owns about 1.3 million shares of Musk’s SpaceX, which it first purchased in September 2017. The firm most recently increased that stake in August. Other holdings include Hyatt Hotels, Amazon and Charles Schwab.

“This is probably the best year we’ve ever had,” he said.

— CNBC’s Lora Kolodny and Pippa Stevens contributed to this report.

Speak Your Mind

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get in Touch

350FansLike
100FollowersFollow
281FollowersFollow
150FollowersFollow

Recommend for You

Oh hi there 👋
It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

We don’t spam! Read our privacy policy for more info.

You might also like

Travel startups cry foul over what Google’s doing with...

As the antitrust drumbeat continues to pound on tech giants, with Reuters reporting comments...

How Invention Education Brings Creativity Back Into The Classroom

Children don't need to be taught how to be creative. ...

Postponing An Appraisal Until After Closing? For Some, It...

Loans may be easier to obtain with temporary new...

New Trump Immigration Order Does What Congress Rejected In...

Donald Trump speaks during a daily briefing of the...