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Tesla investor predicts company revenues of $ 1 trillion in 10 years

Ron Baron – Tesla to Earn $1 Trillion in Revenue in 10 Years

Tesla investor predicts company revenues of $ 1 trillion in 10 years

Billionaire investor Ron Baron believes Tesla has the potential to generate at least $ 1 trillion in revenues in 10 years and continue to grow.

«This is not the end, and then – and now, – he said. – From now on we will have many opportunities for growth».

Baron, whose eponymous investment company owns nearly 1.63 million Tesla shares, said Baron Capital would not sell any of the company’s shares. Tesla’s recent launch, he says, is «just the beginning», because he believes that the company «could become one of the largest companies in the world».

Tesla shares are up nearly 220% in the past six months, including roughly 86.5% this year. The company now has a market capitalization of more than $ 140 billion – almost three times that of General Motors, but less than that of Toyota Motor, by about $ 227 billion..

Shares rose 19.9% ​​on Monday to a record $ 780 per share. Shares jump more than 15% at $ 900 per share in premarket Tuesday.

Craig Irwin, senior analyst at Roth Capital, believes that at some point «reality will turn on» for Tesla, so its shrewd stock valuation is to sell and target price of $ 350.

Irwin said Tesla – «good company» from «reliable» financial indicators, however, he claims, traditional automakers will eventually catch up with the Californian company.

«This is a company facing a slowdown in sales»,- Irwin thinks.

Despite the volatility of stocks and «some self-inflicted damage» by Tesla CEO Elon Musk, Baron confirmed that his belief in the company «never hesitated». He said that if it only depended on him, his company would buy even more Tesla shares..

Tesla investor predicts company revenues of $ 1 trillion in 10 years

Even if Tesla shares rallied more than $ 900 a share or even higher, Baron said he would not like the split to take place: «I don’t think it’s a good idea – stock split», – he noted.

Baron said he is satisfied with investing in Tesla, even if does not earn much, because he is does for the whole world. In addition, the investor indicated that these shares can always be bought and sold..

As of the end of Monday, Baron’s stake in Tesla was $ 1.3 billion. He said he was buying Tesla shares at an average price of $ 219 per share.

According to S3 Partners, investors betting against Tesla shares have lost more than $ 8 billion since the beginning of the year, including almost $ 2.5 billion on Monday alone..

In 2018, Baron made headlines by claiming that Tesla could generate $ 1 trillion in revenue by 2030. Tesla’s revenue in 2021 was $ 21.5 billion versus $ 11.8 billion a year earlier. Revenue, as it became known last week, amounted to $ 24.6 billion  in 2019.