Renowned Investor Predicts 2020 Tesla Stock Price Of $1,000
BILLIONAIRE INVESTOR RON BARON PREDICTS TESLA STOCK CAN HIT $1,000 BY 2020 [VIDEO]
“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%.”
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.”
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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