Ron Baron sees Tesla worth $5 trillion in 10 years Billionaire investor Ron Baron, a longtime Tesla shareholder, believes the electric carmaker could reach a market value of $5 trillion in a decade, saying CEO Elon Musk has a higher number in mind in the long run.
“I think Tesla will be worth $3 trillion or $4 trillion — $5 trillion in 10 years, based on the business plan that I know of,” Baron said on CNBC’s “Squawk Box” on Friday. “And then Elon thinks it’s worth $30 trillion long term.” Forex Mony
At $3.65 trillion, Nvidia had the largest market cap in the United States at the close of business on Thursday, larger than Apple Inc. and Microsoft Inc.
Tesla closed Thursday with a market cap of $1.12 trillion, according to FactSet data.
Ron Baron sees Tesla worth $5 trillion in 10 years
Barron invested $400 million in Tesla between 2014 and 2016, and said the early bet has netted him $6 billion so far as the electric car company gains mainstream acceptance. Tesla represents 10% of Barron’s entire portfolio across various funds.
Tesla is seen as a major beneficiary of the Trump administration’s promised policies, with Musk this year a prominent supporter and donor to the president-elect. Trump recently tapped Musk to lead the so-called Department of Government Efficiency, alongside former Republican presidential candidate Vivek Ramaswamy.
Elon Musk
Tesla shares have surged about 25% in November alone during the post-election rally, returning to a market value of $1 trillion. Barron’s said he will hold on to Tesla for the long term.
“I don’t think I’m going to sell my shares. If it gets too big, I’ll have to cut back a little bit, but no, I have no intention” of exiting, he said.
Elon Musk Tesla
The Barron Capital chairman also built his bullish argument for Tesla on the prospect of its still-in-development humanoid robot, Optimus. Last month, Musk said at a “We, Robot” event that Tesla was making progress on Optimus and that it would eventually cost between $20,000 and $30,000. “It’s going to be a teacher, it’s going to take care of your kids, it’s going to walk your dog, it’s going to mow your lawn, it’s going to bring you groceries… anything you can think of will work,” Baron said. “The idea is that these robots… he thinks it’s going to be his biggest project ever,” Baron said. “He says everyone is going to have a robot.” forex news
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