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Baron Capital Chairman and CEO Ron Baron said Tesla (NASDAQ:TSLA) stocks are about to skyrocket and have now hit bottom.
In an interview with CNBC, the billionaire Tesla investor said that the company's future lies in its Robotaxis and your promised affordable electric car.
On Tuesday, the company announced new models for 2025, including low-cost cars. Earlier this month, Tesla (TSLA) backed out of announcing a $25,000 Model 2 car.
But Baron believes that within 10 to 15 years all cars will be electric. The hybrid car trend, he added, “is a kind of postponement of actions so that car companies don't have to lose money on electric cars,” saying they are too expensive and not effective enough.
Additionally, he said the reason the stock is down (-33.65% so far this year) is that people were worried that Tesla CEO Elon Musk would abandon the idea of having a car. low cost, but it is not like that. Tesla has the capacity to make 3 million low-cost cars a year, he said.
Additionally, Baron said SpaceX will make 20x profits over the next 15 years and four times over the next six or seven years.
“Could it be too big? Sure,” she said. “But I do think we are going to get a lot more money to manage. Therefore, it will be diluted with the new money that arrives. “I’m always thinking about what size a position should be.”
Baron Capital manages about $3.5 billion in Tesla (TSLA) shares, he said.
