Tesla, Inc. TSLA bull Ron Baron delved into the logic Friday behind the company’s charging partnership with legacy automakers such as General Motors Corp. GM and Ford Motor Co. F.
What Happened: The charging partnerships aren’t a big deal economically for Tesla, Baron said in an interview with CNBC’s “Squawk Box.”
“It’s gonna make more charging stations available, so people will be less worried about buying electric cars thinking that they will be able to charge it wherever they go,” he said.
The 4,500 Supercharging stations Tesla has and the 45,000 chargers are plugs with better technology, and it’s faster technology that could transition the country and the world to electrification and electric cars, Baron said.
“This is helpful so basically you buy a Ford, you buy a General Motors car you’re going to be able to charge your cars and not worry about it.”
See Also: Everything You Need To Know About Tesla Stock
Tesla’s Affordability: Contrary to the popular perception that Teslas are a rich man’s car, Baron said they have become affordable now. The average price of a car in the U.S. was $48,000 last year and a Tesla with a $7,500 subsidy is now available for $40,000, he said.
The Model 3 is now priced as low as $33,000, the fund manager said, adding that one can buy a Tesla just like you buy a BMW. That’s the reason why Tesla is now the biggest-selling car in the world. he added.
“When you’re buying this [Tesla] car you’re getting an amazing value, so it’s absurdly cheap — $33,000 for a car and people don’t realize how cheap it is,” Baron said.
Massive EV Opportunity: The Tesla bull noted that only 6% of cars are now electric, so 94% are not, and out of the 2- billion-vehicle fleet, only 1% is electrified, he said.
Baron said he sees a big opportunity for growth, adding that Tesla’s charging stations deals mean people will know they can charge their vehicles everywhere.
In premarket trading on Friday, Tesla stock fell 1.07% to $261.78, according to Benzinga Pro data.
Photo courtesy of Tesla.
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