Shares of Tesla Inc (NASDAQ: TSLA) are currently up about 80% for the year but Ron Baron – the Founder of Baron Capital says it’s just a drop in the bucket compared to where the stock is eventually headed.
Baron reiterates bullish view on Tesla shares
On Tuesday, the billionaire investor reiterated his super bullish view on the electric vehicles company. Baron says he’s comfortable owning a high-flying growth name like Tesla Inc despite higher rates and fears of a recession.
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I’m not really worried about the stock market. I don’t worry about the market; I don’t worry about the economy. I want to make comment about how Tesla is the safest car ever built in the world.
Tesla currently makes up 30% of his flagship fund. It is noteworthy here that the Baron Partners Fund (BPTIX) has returned 20.9% on an annualised basis over the past ten years.
Baron’s constructive view is in line with Wall Street that also rates Tesla shares at “overweight”.
Baron sees strong demand for Tesla vehicles
Last month, Tesla Inc reported record revenue and profit for its fourth financial quarter as Invezz reported HERE.
On CNBC’s “Squawk Box”, Baron said the demand for its electric vehicles remains ever so strong. He expects Tesla shares to be trading at a whopping $1,500 by the end of this decade.
Demand picks up so much, it’s unprecedented demand for his cars right now. We started investing in hiss company in 2014, they were doing 31,000 cars a year. He thinks 20 million cars by 2030. I’m thinking $1,500 a share by 2030.
Earlier this month, Tesla increased prices of its Model Y in the United States that’s likely to help with margins moving forward.