Why Are Tesla Shares Spiking Higher Today?

Tesla Motors Inc TSLA shares are up 4.7 percent on Tuesday following some major positive press.

First, billionaire long-term investor Ron Baron told CNBC’s "Squawk Box" that he has high hopes for Tesla.

“I think this could become one of the largest companies in the United States and the whole world,” Baron said of Tesla. “They can do as much sales in batteries ultimately as they can in cars."

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Baron disclosed that he currently has a $300 million stake in Tesla at an average price of around $210/share.

In other news, research firm IHS on Tuesday said it now predicts that autonomous vehicle sales could reach near 600,000 units by 2025 and 21 million units by 2035. The new guidance is a significant boost from the firm’s previous predictions.

“Our new forecast reflects a 43 percent compound annual growth rate between 2025 and 2035—a decade of substantial growth, as driverless and self-driving cars alike are more widely adopted in all key global automotive markets,” the firm concluded.

Mobileye NV MBLY shares are mostly flat on Tuesday, suggesting the market is reacting more to Baron’s comments than IHS’s forecast.

Some of the big rise could also be a relief rally after Tesla logs showed that a recent Model X crash, was likely due to driver error and not Autopilot malfunction.

Disclosure: the author holds no position in the stocks mentioned.