The head honcho of Baron Capital, Ron Baron has said that Tesla will be the most profitable company in the world and will also be the largest one. Baron who hosted his annual gathering for the first time since the pandemic in 2019 hosted Tesla’s CEO Elon Musk for a fireside chat in New York where he shared his thoughts just after the billionaire completed his tumultuous acquisition of Twitter.
Baron revealed in the chat he was bullish about the future of Tesla which has now become the most valuable automotive company on the planet. He said this despite the economic downturn and the decrease in valuation that Tesla has seen ever since Musk acquired the company and took it private.
In a pre-interview with Forbes, Baron shared more insight into Tesla. “In ten years, Tesla will be the largest and most profitable company in the world,” Baron said in the interview.
Tesla has seen a dramatic drop in its value by 50 per cent since the beginning of the year thanks to a combination of the global downturn, Elon Musk’s decision to buy Twitter and all the drama around it and the US-China standoff which exposes Tesla as it has its biggest manufacturing facility in Shanghai.
Baron Capital has 18 funds with $40 billion in assets which also include Tesla. The Baron Partner Fund is $6 billion into Tesla while the Baron Focused Growth Fund has $700 million of Tesla’s shares in its portfolio. This means that Baron is one of the top 20 shareholders of Tesla.
