Longtime Tesla (NASDAQ:TSLA) bull and legendary investor Ron Baron recently shared some of his optimistic estimates for the electric vehicle maker. Baron noted that he sees Tesla growing about four to five times its current size by the end of the decade.
The 80-year-old Baron is an active manager whose keen investing sense has allowed him to outperform the market since the 1980s. He established Baron Capital in 1982, and 16 of his 19 mutual funds, which represent 98.8% of the firm’s assets under management, have beaten their benchmark since they were conceived.
At the end of 2022, Baron Capital was managing about $40 billion.
In an interview with CNBC, Baron noted that his firm had made about 20 times its investment in TSLA since he started investing in the company in 2014. Since then, Tesla has grown to become the largest holding of the Baron Partners Fund (BPTIX), the firm’s oldest and biggest fund. Baron admitted that he would like to purchase more TSLA, but he cannot for now since he has maxed out his holdings.
— Teslaconomics (@Teslaconomics) September 13, 2023
“I think Tesla in the next seven years will be about four or five times as big as it is right now in the stock market… In the funds that I manage, I’ve been maxed out … when the stock went up 20 times… As far as buying more, I would buy more if I could, but I can’t,” Baron said.
Baron estimated that Tesla’s electric vehicle business could grow 30% in revenue this 2023 and next year. He also expects Tesla Energy to triple over the next three years. So notable is Baron’s faith in Elon Musk that he has also become one of SpaceX’s largest investors. Baron revealed that he currently holds 17.5 million shares of SpaceX, which are worth over $1 billion today.
“No company can compete because nobody can make these rockets go up and come down and land again,” the legendary investor said.
Watch an excerpt of Ron Baron’s CNBC interview in the video below.
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