Renowned investor Ron Baron, known for his long-term support of Tesla (NASDAQ:TSLA), recently shared his thoughts on the potential growth of the electric vehicle company under Elon Musk’s leadership during the Trump administration. Baron, who holds a significant stake in Tesla through Baron Capital, believes that the company could reach a market capitalization of $5 trillion within the next decade.
In an interview with CNBC’s Squawk Box, Baron revealed that Tesla currently makes up around 10% of Baron Capital’s assets, with SpaceX comprising approximately 5%. Despite already having a substantial investment in Tesla, Baron remains optimistic about the company’s future, echoing Musk’s even more ambitious projections.
According to Baron, based on the business plan he is aware of, Tesla could be valued at $3 to $4 trillion within 10 years, with Musk envisioning a long-term valuation of $30 trillion for the company. While these estimates may seem overly optimistic to some, Tesla’s stock has been on an upward trajectory since its strong performance in the third quarter earnings call.
Following the recent US presidential election, Tesla’s stock has surged by about 25% in November alone, pushing the company’s market capitalization to $1.02 trillion. Despite this significant growth and the temptation to cash in on his holdings, Baron emphasized that he has no intention of selling his Tesla shares in the near future.
Baron’s unwavering commitment to Tesla is evident in his decision to hold onto his shares for the long term, even if he may need to make minor adjustments to his portfolio as the company continues to grow. With Tesla’s recent success and promising outlook, Baron remains confident in the company’s potential to deliver substantial returns in the years to come.
As Tesla continues to solidify its position in the electric vehicle market and expand its reach into other industries such as renewable energy and space exploration, the company’s trajectory under Musk’s leadership appears promising. With Baron’s endorsement and long-term investment strategy, Tesla’s journey towards a $5 trillion valuation over the next decade seems well within reach.