Baron Capital's Ron Baron, a famous billionaire investor, thinks his firm's share of Tesla will grow in value significantly in the coming 13 years. Speaking on CNBC's Squawk Box, Baron explained how he anticipates Tesla's performance to turn out.
I think that in 2020 we're going to make from present prices about four times our money. I think in 2025 we can make another triple, and in 2030 it can be another triple. We have brought shares of Tesla, about 1.6 million shares over a 3½-year period of time. Our average cost is about $208 a share. - Baron
He previously said he thinks Tesla is on track to be a trillion dollar company. Tesla's purchase of SolarCity was one of its particularly good moves in the recent past, says Baron.
Forty percent of the electricity in the United States is used by single-family houses. If you put a [Tesla] car in the garage, that car uses 30 percent of the electricity of the house. In order to sell the [electric] cars, you have to … have an increase in power. - Baron
Tesla CEO Elon Musk has also anticipated a $1 trillion market capitalization based on its moves in the automotive, power storage, and power generation markets.