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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