A longtime Elon Musk supporter, billionaire investor Ron Baron, believes Tesla could reach a market cap of $5 trillion within a decade. He also believes that the company could be worth $30 trillion later on.
“Tesla, I think, is going to be worth $3 or $4 trillion — $5 trillion in 10 years, based upon the business plan that I am aware of. Then Elon believes that longer term it’s going to be worth $30 trillion,” Baron said on CNBC’s “Squawk Box” Friday.
Last week, Tesla became a company with a market cap of over $1 trillion for the second time in its history. After Donald Trump was re-elected as president, the stock began to rise. Tesla closed Friday with a market cap of $1.023 trillion.
Baron has been a longtime supporter of Musk and his breakout companies. He first invested $400 million in Tesla between 2014 and 2016. Baron said his early bet on the company has netted him $6 billion as the company has gained mainstream recognition. Tesla makes up 10% of Baron’s total portfolio in various funds.
Tesla is seen as a big beneficiary of the Trump administration’s promised policies, as Musk is a key figure in its presidential victory. Trump recently appointed Musk to a new position to head the Department of Government Effectiveness (DOGE), along with Vivek Ramaswamy, a former Republican presidential candidate.
Tesla shares have risen about 25% in November alone during the post-election rally. Baron said he will hold his Tesla shares for the long term. “There’s no way I’m going to sell shares. If they get too big I will have to trim a little bit, but no I have no intention of exiting,” he said.
Baron also has a bullish outlook for Tesla on the prospects for its humanoid robot Optimus. At last month’s “We, Robot” event, Musk said Tesla was making progress on Optimus and that it would cost between $20,000 and $30,000. The robot could eventually be a teacher, a babysitter, a dog walker, a grocery shopper, and anything else we can think of.
“The idea is that these robots … he thinks it will be his biggest business ever,” Baron said. “He says everyone will have robots.”
