Tesla's Road To Becoming A $1 Trillion Company, Can They Make It?

While industry watchers are making criticisms, as well as questioning the current surge in Tesla's stock price as it has reached new heights and surpassed bigger automakers like Nissan, billionaire investor Ron Baron says that it's only the beginning. Baron, a large investor in the company, sees a possibility of Tesla becoming a trillion-dollar company within the next decade or so.

Tesla's Potential To Hit A Trillion

Over the past three years, Ron Baron's firm has accumulated over 1.6 million shares in Tesla at what the famous investor estimates to be an average price of $208 per share. During the current stock price testing, at a new all-time high of $280, the stake is worth close to $450 million.

Ron Baron's Prediction

"In 2020, we are going to make the present prices four times our money and I think that in 2025, we could be making another triple. And in 2030, it could also be another triple," Baron said in an interview. According to Electrek, Baron highlighted the fact that it is going to be a long 15-year timeline for a 73-year-old investor, but he estimates about the short-time probability of a 4x increase in 2020 as "very high."

While being is less confident about his long-term predictions, Baron still sees a potential for a 30x increase from today's prices by the end of the next decade. That would indeed value Tesla at over $1 trillion or more than Google or Apple.

Tesla Is In The Best Of Positions

According to CNBC, Baron is also optimistic about Tesla merging with SolarCity because he is an avid fan of Musk's vision of packaging electric vehicles, solar arrays, and home battery packs. He agrees with Musk's prediction of the increase in electricity demand due to electric vehicles to be a great opportunity that Tesla is already well-positioned to take advantage of.

Of course, everything, for now, should be taken with a grain of salt as it is only mere predictions. But judging by the events that are happening, it seems that Baron's prediction might come into reality.

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