in our free newsletter.

Thousands benefit from our email every week.

  • 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 ?

Massive upside in TSLA?

Tesla shares have been volatile — they plunged 65% in 2022 but have climbed by more than 120% so far in 2023. However, long-term investors — like billionaire Ron Baron — are still laughing all the way to the bank.

Baron’s firm, Baron Capital, has been investing in Tesla since 2014. During a recent MarketWatch interview, Baron said that his company has made “about 20 times our money” from Tesla.

The newly launched Cybertruck may give investors a new reason to check out Tesla stock. But Baron believes there’s another catalyst on the horizon: a more affordable electric vehicle.

“Wait until you see what’s going to happen when all of a sudden they start selling cars, instead of for $40,000 a piece, for $25,000 a piece, which is going to happen in about a year or year and a half,” he said in a CNBC interview last month.

Previously, Baron has said that he expects Tesla to hit $500 a share in 2025. Considering that shares currently trade at just shy of $250, the price target implies a potential upside of more than 100%.

For the long haul, Baron is even more bullish, saying he expects Tesla to achieve a market cap of $4 trillion within 10 years. Tesla currently has a market cap of around $770 billion.

For those wondering how the newly launched Cybertruck can boost the company’s financials, patience is likely key.

During Tesla’s third-quarter earnings conference call, Musk said, “There will be enormous challenges in reaching volume production with the Cybertruck, and then in making a Cybertruck cash-flow-positive.”

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.

Zoe Financial 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.

About the Author

Jing Pan

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.

What to Read Next

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.