- Billionaire investor Ron Baron said he thinks Tesla could hit $3,000 a share in five years, according to an interview on Tuesday morning with CNBC.
- “Tesla, that’s going to be $2,000 or $3,000 in five years, and a multiple of that over the next five years,” Baron said.
- Ultimately, Baron thinks Tesla can rise as high as ten times current levels, and he’s not looking to sell his stake anytime soon. Rather, he wants to buy more.
- “I would like to be able to get more money to buy more Tesla, actually,” Baron said.
- Baron also gave advice to new investors and revealed the biggest investment mistake he’s ever made.
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Tesla’s meteoric rise will continue on for years to come, according to billionaire investor Ron Baron.
In an interview with CNBC on Tuesday morning, Baron said that Tesla could soar as much as 215% from current levels over the next five years.
“Tesla, that’s going to be $2,000 or $3,000 in five years, and a multiple of that over the next five years,” Baron told CNBC’s Becky Quick.
Baron is the chairman and founder of Baron Funds, which offers and manages several growth tilted mutual funds to investors.
As of April 30, multiple funds managed by Baron Funds owned Tesla, including the Baron Partners Fund, which had 25.5% of its $2.2 billion in assets invested in Tesla, and the Baron Focused Growth Fund, which had 26.1% of its assets invested in Tesla. Baron is also an investor in Musk's privately held SpaceX.
Baron said he still thinks Tesla is a good buy here. When asked if he'd consider selling his shares of Tesla over $900, Baron replied, "I would like to be able to get more money to buy more Tesla, actually."
Baron said it made sense to short Tesla over the past decade when the company was struggling to scale up its manufacturing capabilities and had to raise a lot of capital to essentially build an electric-car company from the ground up.
But now, after scaling production and delivering hundreds of thousands of cars annually, Tesla is in fact a viable car company.
Baron pointed to the company's strong brand recognition with $0 in advertising and its technology advancement, specifically in improved battery efficiencies, as reasons to be long the company.
The billionaire provided a progress report on where he ultimately sees Tesla going:
"I told you a long time ago that I thought we'd make 20 times our money in Tesla. So far we've made four times. I now think we're going to make double or triple again for the next five years, and double or triple again over the next five years. I think there's ten times more to go in Tesla before I have to even think about if we're right."
Shares of Tesla closed at an all time high on Monday at $949.92, and is trading flat on Tuesday afternoon.
Baron also had advice to new investors: "The only way you can possibly come up with a good opinion is to go do the research yourself. You can't rely on other people on what to buy or what to sell."
Additionally, Baron revealed the biggest investment mistake he ever made in his career.
"The biggest mistake I ever made was seeing Jeff Bezos for a year up close and personal and not investing in [Amazon]. How could I miss that?" Baron said.