Incredible Predictions for Tesla from Ron Baron

Ron Baron, as one of Tesla's largest long-term supporters, expressed a highly optimistic outlook for the company's stock in a recent interview with CNBC. Baron argues that the scale of what Elon Musk is building is still being underestimated by the market.

As the founder of Baron Capital, Baron has held Tesla (NASDAQ:TSLA) shares for over a decade and is known for his long-term composite return forecasts from the electric vehicle manufacturer.

Baron stated that Tesla employees are not worried that Musk's earnings per share will not exceed 5-7 times more in the next 10 years. "I'm thinking about a $2500 per share level in 10 years. And I believe it could be four times that," he said.

When asked what factors could lead to such a high stock price, Baron pointed to Musk's recent presentation. "Did you watch his annual meeting?" he asked, suggesting that the interviewer review Musk's presentation of the humanoid robot named Optimus when the interviewer admitted to being unaware of it. Baron said, "I think Optimus is the next step for him and the biggest thing."

Baron highlighted that Tesla has built a production capacity for one million units for the coming year and aims to produce 10 million units the following year. Musk envisions Tesla eventually producing one billion units per year.

Baron presented this production, with a cost of approximately $20,000 per robot, as revolutionary. He described this situation as a transition to sustainable abundance with low-cost robotic labor that reshapes living standards.