Billionaire investor Ron Baron has made yet another incredibly bullish prediction about Tesla’s future, saying he believes the electric vehicle maker could reach a market valuation of $4 trillion within the next 15 years.
Ron Baron thinks $TSLA can hit a $4 trillion market cap. “You get rich by being long-term and by being focused, by owning a small amount of companies.” Baron stated “We think Tesla has the ability to be one of the largest companies in the whole world.” He went on to explain “Tesla has opportunities to be in businesses that will generate revenues and profits that are 10 times the revenues and profits of the automobile business.”
Baron’s private investment firm holds nearly 1.8 million Tesla shares, making it one of the largest institutional investors in the automaker. Despite Tesla’s volatile stock price this year, Baron remains highly confident in its long-term growth prospects under CEO Elon Musk.
Elon on $TSLA potentially hitting a $4 trillion market cap: “We do need to knock the ball out of the park several times to achieve that value, but I think we can.”
Baron pointed towards Tesla’s software, autonomy, and energy storage divisions as major opportunities beyond just electric vehicles. He specifically highlighted the future robotaxi network that Tesla plans to deploy using its Full Self-Driving capabilities. Musk stated last year that he expects the robotaxi platform alone could be worth more than Tesla’s entire current business.
Baron also sees SpaceX playing a huge role in driving Musk’s net worth over $1 trillion in the future. He thinks SpaceX has the potential to reach around $500-$600 billion in valuation by 2030, a massive increase from the $127 billion valuation estimated after its latest funding round.
“SpaceX has a chance to be even bigger than Tesla in the 2030s,” Baron remarked. With the company dominating the commercial launch market and leading development of next-gen spacecraft like Starship, SpaceX’s addressable market does appear immense.
Between his Tesla and SpaceX holdings, Musk could cement his status as the world’s first trillionaire within the next 10-15 years if Baron’s incredibly lofty projections materialize. However, Musk has previously said his ultimate ambition is to use his wealth to enable humanity to become a spacefaring civilization and establish bases on the Moon and Mars.
While $4 trillion may seem an impossible feat, Tesla bulls point towards the automaker’s uniquely high margins, technology lead, and Elon Musk’s proven execution as reasons to believe it could grow into one of the most valuable companies on Earth. With Model 3 and Model Y demand still surging globally, Cybertruck launching end the year (Cybertruck delivery event November 30), and new factories ramping up, Tesla appears poised to dominate electric vehicles for the foreseeable future.