Billionaire Investor Claims Tesla Will Be Worth a Trillion Dollars by 2025

During a taping of “Squawk Box,” billionaire Ron Baron said that he believes his company’s $300 million stake in Tesla will quadruple in 2020, triple in 2025, and triple again in 2030.
This favorable view of Tesla’s future aligns with that of the company’s CEO, Elon Musk, who said in 2016 that he believes Tesla could achieve a $1 trillion market capitalization.

A TRILLION DOLLAR FUTURE
Famous buy-and-hold billionaire Ron Baron is excited for the future of Tesla, one of his company Baron Capital’s long-standing holdings. Speaking during a taping of CNBC’s “Squawk Box” on Wednesday, Baron claimed he is confident that great things are coming for and from Tesla in the next 13 years.

“I think that in 2020 we’re going to make from present prices about four times our money. I think in 2025 we can make another triple, and in 2030 it can be another triple,” Baron said. The billionaire investor added, “We have brought shares of Tesla, about 1.6 million shares over a 3½-year period of time. Our average cost is about $208 a share.”

Tesla, which didn’t always enjoy such a favorable standing amongst investors, is certainly on the rise. A contributing factor was the move to acquire solar energy company SolarCity in November. The $2 billion investment made a lot of sense, Baron said, as it all comes down to the power grid’s capacity.

“Forty percent of the electricity in the United States is used by single-family houses. If you put a [Tesla] car in the garage, that car uses 30 percent of the electricity of the house,” he argued. “In order to sell the [electric] cars, you have to … have an increase in power.”

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