Billionaire Investor Ron Barron states Tesla could soar 570% over the next decade to a $4.5 Trillion Valuation

Billionaire investor Ron Baron of Baron Capital remains bullish on Tesla, despite the stock falling more than 50% this year. In a recent interview, Baron told CNBC that he expects Tesla to deliver outsized gains, eventually leading them toward a $4.5 Trillion valuation. Tesla's stock will have to reach a price of $1350 to reach that kind of level. Or rise by more than 570-600%

Baron has been a bull on Tesla ever since his fund started buying Tesla shares back in 2014 and his personal holdings and his company' add up to a massive $4 Billion holding in Tesla. In addition to that, Baron mentioned that he thinks Tesla stock will be around $500- $600, and in eight to ten years, "it ought to be somewhere around $4.5 Trillion".

The math behind Baron's bullish valuation target is solely predicted by Tesla's ability to scale its business over the next decade. Selling about 20 million cars per year. Tesla is on track to sell just over 1 million vehicles in 2022. "In 2030, if he does 20 million cars per year, and they're $50,000 a car, that's $1 Trillion in revenues, and he gets operating profits at somewhere around 30%, "Baron explained, adding that a 15x multiple on those $300 Billion in operating profits get you to $4.5 Trillion," said Baron.


Baron said this is excluding robots, autonomous vehicles, and batteries. And Elon Musk thinks robots are going to be bigger than cars. He also added, there are so many things going on in Tesla, that it's hard to keep up.

Even though the company faces a lot of issues from its critics and sometimes from even its owner, Elon Musk, Tesla has been delivering record revenues, record profits, and many more. Tesla stock may be a good buy in the long-term view given the numbers it keeps on giving and the huge advantage it has over its competitors. 

Comments

Post a Comment

Popular posts from this blog

The Twitter-Musk Saga

Image
Elon Musk reportedly stood back on his original offer to buy Twitter for around $54.20 per share. Valuing the deal at around $45 Billion. Musk made this offer originally on April 14 and just after 11 days, Twitter accepted the deal, but then on July 8th, Musk backed out of the deal stating Twitter failed to provide him with enough data on the bots and total spam accounts on Twitter.  Twitter sued Musk and then took him a trial to court and just yesterday, Musk proposed the same offer once again. A lot of experts believe this sudden change of mind by Elon happened because he had no other option and he would have lost the case if he kept on fighting against Twitter. Shares of Twitter closed up at $52.00 (22.24% increase) Shares of Tesla closed up at $249.44 (2.90% increase) Everyone awaits more news on this offer, what Elon Musk decides to do further, and when there will be any further development on this situation. 
Read more

Tesla Semi Truck, does that ring a bell?

Image
We all have heard of Tesla's affordable and luxury cars, long-awaited cyber truck, and their Optimus robot which was revealed a week back. But do you remember the Semi Truck which they launched back in 2017? well if you don't then this is what it looks like. Pretty huge right? This was unveiled back in 2017 when the man himself Elon Musk revealed the concept model to the world. The production is underway and it is starting to speed up by the end of this October.  This has not been made available to the general public, however, Tesla is still taking up corporate orders.  Elon Musk tweeted that Pepsico (the soft drinks company) will take the deliveries of their semi trucks in December.  Tesla claims that the Semi Trucks will provide a range of more than 500 miles / 804 km on a single charge and in addition to that, drivers or companies can save more than $200,000 over a period of 5 years compared to the fuel consumption they would have done if they were still using regular truck
Read more

Rishi Sunak is Wealthier than the Royals

Image
The newly appointed Prime Minister of the UK, Rishi Sunak, and his wife have a combined net worth of $820 Million. This makes them the 222nd richest couple in Britain and this means that they are wealthier than King Charles who is roughly worth $600 Million after inheriting $500 Million from his mother, Queen Elizabeth after her death on September 8. The major chunk of the couple's net worth comes from Sunak's wife, Akshat Murty's $460 Million stake in Infosys. India's second-largest IT & software company. The Citizens of the United Kingdom doubt whether Sunak will be able to deliver his promises to the people because he does not understand what it is like to live under the bare minimum, which is the current situation for a lot of households in the UK as of now because of high inflation and poor control by the government on recent economic turndowns. 
Read more