Tesla’s stock has been rising since late January. Interestingly, Baron Capital CEO Ron Baron announced his positive outlook on Tesla’s stock, which he believes could reach $1,500 by 2030.
Following the demand surge from Tesla’s recent price cuts, some experts expect the stock to grow in the coming years. EV adoption has also been progressively expanding as governments worldwide started to promote to combat climate change.
During the latest episode of CNBC’s Squawk, CEO Baron noted that he was not concerned about market volatility. He reasoned that the current levels of customer demand for Tesla’s EVs are high, per the report.
Tesla’s demand is soaring
Tesla’s current demand is at historically high levels, according to CEO Baron. That said, the 79-year-old senior investor expects the automaker’s stock price to rise further in the coming years.
Notably, Tesla accounts for approximately 30% of the BPTIX portfolio. Therefore, it is currently Baron Capital’s biggest holding.
“Demand picks up so much. It’s unprecedented demand for his cars right now. We started investing in his company in 2014, and they were doing 31,000 cars a year … he thinks 20 million cars by 2030. I’m thinking $1,500 a share by 2030.”
Baron Capital CEO Ron Baron
Notably, Tesla’s growth in recent years has substantially increased Baron’s mutual fund. The Baron Partners Fund (BPTIX), which owns $5.7 billion in assets, has seen a five-year annualized return of about 26.5% on Tesla stock and a 10-year return of 20.9%.
As per Morningstar, these figures place the fund as the best-performing long-term US equity fund.
“I’m not really worried about the stock market. I don’t worry about the market. I don’t worry about the economy.”
Baron Capital CEO Ron Baron
Baron’s trust in Tesla
CEO Baron noted that Tesla had been recognized as “the safest car ever built in the world.” He also anticipates the EV giant to release a lower-cost model that will make the company worth seven to ten times ten times more in the future.
Furthermore, Baron is optimistic about Elon Musk’s business overall. He even revealed last year that one of his most significant purchases included approximately $100 million in private investments with SpaceX, with the remaining $200 million going toward a specific satellite.
Nonetheless, it would be hard to accurately predict Tesla’s share growth in the coming years. However, it is difficult to deny that Baron has been correct in the past.
