Baron Capital’s investment in Tesla is now worth around $3.37 billion based on the stock’s current trading price. It generated a return of ten times, halfway its goal of 20 times return.
In an interview on CNBC’s Squawk Box on Wednesday, Baron said, “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.”
He noted that Tesla already expanded on three continents and he expects its growth to continue over the next ten years. He noted that its CEO Elon Musk has “sheer willpower” to build a successful business citing the fact that he is now overseeing 50,000 employees and building factories in China, Germany, and the United States. He expects it to build factories “continuously over ten years.”
Ron Baron doesn’t worry about short-term fluctuations of Tesla stock price
When asked about volatility, since he noted that during the first five years of his firm’s investment Tesla’s shares were trading “up and down like a yoyo,” Baron said he is not worried about the short-term stock fluctuations.
