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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.”

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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.


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