Courtesy of Tesla, Inc.
Veteran investor Ron Baron predicts a promising future for Tesla, with its shares soaring to $500 by 2025 and a striking $1,500 by 2030, marking an 89% increase from present levels and an astounding 467% increase from Thursday’s close, respectively.
Baron, Chairman and CEO of Baron Capital, cited Tesla’s significant potential for growth in the electric vehicle market as a key reason for his optimistic outlook, in an interview with CNBC.
He noted that currently, only 6% of cars are electric, indicating ample room for expansion. Additionally, Baron spotlighted the company’s recent agreements with Ford and General Motors to share Tesla’s charging network, which he believes will further bolster its growth.
Baron, who made his initial investment in Tesla back in 2014, revealed in an interview on CNBC’s “Squawk Box” that he had invested $380 million and reaped $4 billion in return. He also disclosed that he liquidated about $1.5 billion a few years back to rebalance his portfolio.
Today, Baron Capital holds 17.5 million shares of Tesla, accounting for slightly less than 10% of its portfolio. Baron himself personally owns 5 million shares.
Tesla’s stock has experienced significant success in 2023, with shares rallying by more than 114%. Despite this steep rise leading Morgan Stanley analyst and long-term Tesla supporter Adam Jonas to downgrade the stock to equal weight from overweight, Baron remains unperturbed.
Emphasizing his long-term investor stance, Baron stated, “It’s the same price that it was three years ago, and the business is three times bigger.” This comes despite a 65% drop in Tesla shares last year, underscoring Baron’s unwavering faith in Tesla’s potential.
Shares of Tesla have risen 115% in 2023 and currently are trading at $259.95 per share on Friday, down 1.7%.
