Tesla could grow fivefold in the next seven years, says Ron Baron. He has a very optimistic view of the company’s development. His initial investment has already returned Baron Partners Fund 20 times that amount. Tesla’s share of Baron’s firm portfolio is 46%.
Renowned billionaire investor and Baron Capital CEO Ron Baron joined CNBC‘s “Squawk Box” Wednesday morning. He discussed his investment in Tesla, which he has been a fan of for many years. As before, the legendary investor maintained his bullish view on the manufacturer, expecting its market capitalization to continue to increase.
Baron first began investing in Tesla stock in 2014. He said that since then, his firm has already made about 20 times its initial investment. This means that over the years, despite the company’s downfalls, Baron did not lose faith in Tesla, which paid off handsomely. Tesla accounts for 46% of Baron’s oldest and largest fund, Baron Partners Fund (BPTIX). This, more than anything else, emphasizes how much the investor believes in the manufacturer.
Based on its years of experience, Baron believes Tesla’s market capitalization will potentially rise to five times its current market value. He expects this could happen within the next seven years. As of the close of trading on Wednesday, Tesla’s market capitalization was $861.1 billion. That means Baron believes it could be more than $4.3 trillion over the next seven years.
“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,” he said in an interview.
The Baron Partners Fund’s 46% Tesla portfolio is very impressive. However, the investor said he would no longer invest in the manufacturer’s shares for now. He explained that he invested all available funds in TSLA when their cost was high, so now he will wait.
