• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Low-cost model to the rescue?

There are many reasons why a stock may rise or fall. Baron has his own explanation for why Tesla shares tumbled this year.

“When I think about the reason the stock is down, it’s because people were concerned that Tesla CEO Elon Musk was going to abandon the idea of having a low-cost car and go all into robotaxis,” he suggested.

Musk isn’t abandoning that idea. Previously, Tesla expected to start production of new affordable EV models in the second half of 2025. However, during Tesla’s latest earnings conference call, Musk updated the timeline, stating, “we expect it to be more like the early 2025, if not late this year.”

Tesla shares surged following Musk’s remarks, despite the quarter itself being less than stellar.

In Q1, the EV company generated $21.3 billion in revenue, down 9% year over year. Adjusted earnings came in at 45 cents per share for the quarter, compared to 85 cents per share in the year-ago period. Both figures fell short of Wall Street’s expectations.

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Learn More

All cars to become electric?

Baron envisions a rapid timeline for the U.S. automotive industry's shift from internal combustion engines to battery-powered EVs.

“Electric cars, I think, is going to be all the cars 10-15 years from now,” he said.

And even hybrids won’t endure the transition, according to the billionaire investor. He described hybrids as “too expensive,” “not effective enough” and therefore, they will not be “part of the mix.”

Tesla is leading the charge in this transition. Data from Kelley Blue Book indicates that 55% of the EVs purchased by Americans in 2023 were Tesla products.

"While that figure is down from 65% in 2022, Tesla's aggressive campaign of price cuts helped it retain its top position in 2023. The price cuts brought Tesla's two most affordable cars – the Model Y SUV and Model 3 sedan – into closer reach for more Americans. In fact, one out of every three EVs sold in 2023 was a Tesla Model Y," said the press release.

Baron has already made a fortune for himself and his clients from his Tesla investment. How much higher can the stock go?

Last year, Baron told MarketWatch that he expects Tesla to achieve a market cap of $4 trillion within 10 years. Tesla currently has a market cap of around $527 billion.

Sponsored

Follow these steps if you want to retire early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Advisor is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.