Renowned Investor Predicts 2020 Tesla Stock Price Of $1,000

5 months ago by EVANNEX 14

Tesla

Tesla Vehicle Lineup Via Preisert Design

BILLIONAIRE INVESTOR RON BARON PREDICTS TESLA STOCK CAN HIT $1,000 BY 2020 [VIDEO]

Renowned mutual fund manager and investment icon Ron Baron of Baron Capital is well-known for his conservative, long-term approach to stock picking. He’s been compared to Warren Buffett (both for his investing style and outstanding track record) and has said that the Silicon Valley automaker “may be the most interesting” company he’s ever invested in over his 46 year career.

*This article comes to us courtesy of Evannex (which also makes aftermarket Tesla accessories). Authored by Matt Pressman.

Tesla Model S, New Zealand

Model S

Recently, CNBC interviewed Baron for his views on Tesla [NASDAQ: TSLA]. What is his forecast for the stock?

“I think it is going to be about $500 to $600 next year, and I think it is going to be $1,000 in 2020.” 

At that time, Baron said, he expects the company to have $70 billion in revenue and to be earning $10 billion in operating profits. By 2020, the Palo Alto caraker says it expects to be selling one million cars per year.

Above: Ron Baron provides thoughts on investing in Tesla (Source: CNBC)

Baron is a major Tesla shareholder. He noted that he bought about 1.6 million shares at an average share price around $208 to $210. Marketwatch reports that:

“Tesla is the fifth largest holding in the Baron Opportunity Fund which first bought shares back in June 2014… [and] so far this year, the Baron Opportunity Fund has absolutely crushed the S&P 500 and its fund peers, surging 26%.”

Tesla

Baron’s forecast for Tesla and the DJIA (Image: Marketwatch)

And Ron Baron is not alone when it comes to his outlook on Tesla. Yesterday, Teslarati reported that Berenberg (based in Germany) is also extremely bullish on the electric automaker — upgrading its price target to $464. Berenberg’s Alexander Haissl explains:

“With no clear pathway to high-volume EV production for these OEMs [original equipment manufacturers] before the mid-2020s, Tesla will be given a near-monopolistic opportunity to gain market share and outcompete the incumbent automotive industry.”

Tesla

Berenberg estimates that Tesla will invest nearly $33 billion into growth opportunities over the next five years, which represents 40% more than Daimler and Volkswagen combined (Image: Business Insider)

Berenberg estimates that Tesla will invest nearly $33 billion into growth opportunities over the next five years, which represents 40% more than Daimler and Volkswagen combined (Image: Business Insider)

Berenberg’s Haissl also believes that Tesla’s “best-in-class cost base and production processes” will allow it to generate 50% more profit per vehicle than its competitors in the coming years. Haissel notes, “Tesla’s disruptive potential encompasses the vehicle, the entire production process and the product-to-market strategy. Once the business reaches scale, the cash generation potential is significantly superior to existing premium OEMs.”

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*Source: CNBC, Marketwatch, TeslaratiBusiness Insider

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers. Our thanks go out to EVANNEX, Check out the site here.

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14 responses to "Renowned Investor Predicts 2020 Tesla Stock Price Of $1,000"

  1. Pushmi-Pullyu says:

    RENOWNED INSIDEEVS COMMENTER PUSMI-PULLYU PREDICTS 2020 TESLA STOCK PRICE OF A GAZILLION DOLLARS

    There, that ought to do it. No point in shilly-shallying around, inching up stock pumper “estimates” in units of mere tens or hundreds of dollars! Cut out the middle-man!

    😀 😀 😀

    Seriously, if the stock price continues to rise, Tesla is likely to split the stock, so I question that the price will actually reach $1000, or anywhere close to that.

    http://www.investopedia.com/ask/answers/113.asp

    1. Pushmi-Pullyu says:

      Dang, did it again! Only the “headline” in my post was supposed to be in boldface.

      ***Thanks muchly to InsideEVs staff who have kindly edited a couple of my recent posts where I messed up the HTML tags!***

      ***mod edit (staff)***
      No problem. Last post fixed!
      ***mode edit***

      1. Ha! That Headline has a typo! Spelt your handle wrong! “PUSMI-PULLYU” is missing an ‘H’.

        1. Pushmi-Pullyu says:

          Thanks. 🙂

          I’m pretty good at copy-editing what other people write. I’m really lousy at editing my own stuff! Heck, I know what I meant to write…

    2. Waiting says:

      Not being an investor I can’t fathom why Tesla doesn’t split the stock at least twice. A lower stock price would result in more investors and thereby more money for the company. Few people can pay the current stock price much less $1000 a share.

      1. Mark.ca says:

        How many people you know that invest/gamble in the stock market and don’t have $400? You don’t have to buy 100 shares, you can start with one. The split will bring more traders in and make it more liquid and maybe reduce volatility a bit but that’s about it.

      2. Pushmi-Pullyu says:

        I was surprised to read that Apple did a 7-for-1 stock split, when their stock reached ~$645. It hadn’t occurred to me that anyone would ever do more than a 2-for-1 split.

    3. William says:

      Pushi, Tesla will do a BOLD FACE stock split, only after their market capitalization (64. B), surpasses that of Daimler (78. B), sometime in the next couple of quarters. Wall Street, will be keeping a close eye on the #1 Toyota (171. B), as the the Tesla/Daimler potential unseating scenario unfolds.

  2. Someone out there says:

    Why not 100 trillion dollars? With lasers on the head?

  3. Nix says:

    Ron is also known to make wild statements just to get his company’s name in the news cycle…

    1. Well, it’s working, today, anyway!

  4. Dave86 says:

    At $1000/share, what would be the market cap for Tesla? How does that compare with Toyota?

    1. Some Guy says:

      If there is no split (or additional shares issued), should come close to Toyota today. However, Toyota at the time might be higher (or lower).
      So let’s wait and see…

  5. Four Electrics says:

    Ah, the pump and dump. It never gets old.

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