Tesla’s shares have been heading upward in recent weeks, and one analyst thinks the stock still has plenty of room for growth. On the heels of increased demand from Tesla’s recent price cuts, some are looking toward the stock’s upside for future years, especially as more consumers consider buying electric.
Above: Ron Baron on CNBC’s Squawk Box (Image: CNBC).
Head of Baron Capital Ron Baron said that he thinks Tesla’s stock could hit $1,500 by 2030, as stated during a recent episode of CNBC’s Squawk Box. In the course of the session, Baron said he wasn’t concerned about volatility available in the market, especially with current levels of consumer demand for Tesla’s vehicles.
Baron considers Tesla’s current demand to be at historically high levels, and the 79-year-old veteran investor expects the corporate’s stock price to maintain going up within the years to come back. Tesla makes up about 30 percent of the BPTIX portfolio, making it Baron’s largest holding.
“Demand picks up a lot, it’s unprecedented demand for his cars immediately,” Baron said to CNBC in the course of the recent segment of Squawk Box. “We began investing in his company in 2014, they usually were doing 31,000 cars a yr … he thinks 20 million cars by 2030. I’m considering $1,500 a share by 2030.”
Baron’s mutual fund has remained considered one of the best benefactors of Tesla’s exponential growth previously several years. With a complete of $5.7 billion in managed assets, The Baron Partners Fund (BPTIX) has seen a five-year return of about 26.5 percent on Tesla’s stock on an annualized basis, and a 10-year return of 20.9 percent. In line with Morningstar, these figures make the fund the best-performing U.S. equity fund over the long-term period.
“I’m probably not fearful in regards to the stock market,” Baron added. “I don’t worry in regards to the market. I don’t worry in regards to the economy.”
As for his confidence in Tesla, Baron noted that Tesla has been called “the safest automobile ever built on this planet,” and he expects the automaker to place out a lower-cost model which he says will make the corporate price seven to 10 times more down the road.
Above: Billionaire investor Ron Baron explains why he’s bullish on Tesla (Video: YouTube / CNBC).
To be certain, Baron is bullish on Elon Musk’s corporations usually. Last yr, Baron disclosed that considered one of his largest purchases of the yr included roughly $100 million in private investments with SpaceX, and around $200 million going toward a particular satellite.
There’s no strategy to know what is going to occur to Tesla’s share prices within the weeks and years to come back, but it surely’s hard to disclaim that Baron has had some things right previously. As for whether Tesla’s stock trading price could hit $1,500 by 2030, the jury’s still out, but an inexpensive, mass-market EV could also be a vital element of that journey within the years to come back.