The American tech giant Tesla has recently faced difficult times, with its production, sales, reputation, and even legality under fire, causing its stock to plummet nearly 40% since the start of the year. Many investors have lost faith in Tesla's future, yet some still believe in the company's ability to bounce back and rise again.
Prominent U.S. investor Ron Baron has stood out by expressing his support for Tesla. The most notable of his investments include financing the world-class football club Manchester United through the Glazer family in 2012 and investing $380 million in Tesla in 2014. A decade later, he continues to support Tesla, with his firm Baron Capital now holding $3.5 billion worth of Tesla stock.
Ron Baron believes that Tesla's stock is nearing its low point and is about to rebound, with the key to this recovery being their planned autonomous taxis and future low-cost electric vehicles. Baron Capital predicts that electric vehicles will completely replace gasoline and hybrid cars within the next 10 to 15 years, with Tesla, as a globally recognized electric vehicle company, poised to soar on this wave.
Regarding Tesla's slump this year, Baron Capital has shared its perspective, suggesting that the primary reason for the decline is investors' concerns that Tesla's leader, Elon Musk, might abandon low-cost cars. However, Musk announced on Tuesday that he plans to launch a low-cost car in 2025, aiming for Tesla to produce 3 million low-cost cars annually.
Besides the automotive industry, Baron Capital is also very optimistic about Tesla's SpaceX project, believing it will quadruple in size within 6-7 years and surge more than 20 times in 15 years.
