Ron Baron: “By the end of the 2020s, Tesla will cost $ 1.5 trillion”

Ron Baron: “By the end of the 2020s, Tesla will cost $ 1.5 trillion”

March 3, 2020 0 By autotimesnews

Ron Baron, a major investor and shareholder of Tesla, said that in ten years, Elon Mask company will cost twelve times more than today and will begin to sell at least 10 million electric vehicles a year.

Baron Capital managing director Ronald Baron began buying Tesla shares back in 2014. Since then, he has not hidden his confidence in the company and managed to make several predictions. So, in 2017, he announced that Tesla could become a trillionaire by the end of the next decade.

After a sharp rise in Tesla’s stock prices a couple of months ago, Baron clarified his previous forecast by adding another $ 500 billion to Elon Musk’s value, Electrek said.

“This is just the beginning. We acquired almost all of our shares from 2014 to 2016: 1.62 million shares at an average price of $ 219.14. The price was $ 355 million. Everyone criticized us. Last summer, stocks cost about $ 240. Now three times more. The company’s value rose from $ 2.5 billion in 2013 to $ 25 billion last year. This year it can grow up to $ 33 billion. In 2024, Tesla can make a profit of $ 100 to $ 125 billion and cost from $ 300 to $ 400 billion. ”

As a result, by 2030, according to Baron’s forecast, Tesla could become one of the largest and most expensive companies in the world.

As for sales, they will also take off. “Last year, Musk sold 367,000 electric cars. Two years later, will sell a million. Now more than 90 million cars are sold annually. I think he will be able to sell at least 10 million a year, ”the investor believes.

The Baron does not believe that competition will at least slow down the Mask. It will be very difficult for other companies to compete with him, because Tesla invests in researching batteries, not engines, and is constantly improving electric car systems through cloud updates.

Recently, a group of journalists and engineers dismantled the Tesla Model 3 electric car to find out how the company is ahead of the competition. It turned out that at least six years. The fact is that Tesla uses a more concise vertical approach to the electronic filling of the car.

Musk himself admitted on the eve that his SpaceX and Tesla companies are at least 3 years ahead of competitors in key technology solutions.