Billionaire investor Ron Baron has a cost average of around $13 on his Tesla Inc TSLA investment. If he was not restricted from buying more, he would continue buying at current levels as he doesn’t see a top in sight.
What To Know: Wednesday on CNBC’s “Squawk Box,” Baron, founder and CEO of Baron Capital, explained that his firm has maxed out its exposure to Tesla with a 7% weighting across its funds — that’s the only thing stopping him from buying more.
“If I had a chance to buy more stock in Tesla right now, I’d buy more stock in Tesla,” Baron said.
“I think, in the next 10 years, we’re going to make four, five, six times our money, but I can’t even put a top on how much we’re going to make in Tesla because there are so many businesses.”
Tesla was started as an electric vehicle company, but it has many other areas of focus including charging, solar, autonomy, robotics and AI. CEO Elon Musk is often criticized for having his hand in too many buckets outside of Tesla, specifically related to his purchase of Twitter, now X, and the launch of xAI.
Check This Out: Ron Baron Backs Elon Musk’s $56B Pay Package: ‘Tesla Is Better With Elon’
Why It Matters: Baron said the entire “Musk ecosystem” will benefit Tesla, as he argued that all of Musk’s ventures are connected. Instead of focusing on concerns about Musk, Baron is eyeing opportunities within Tesla that others appear to be overlooking.
“This robotics business is going to be unbelievable,” Baron said.
He told CNBC that Tesla’s Optimus ambitions are not priced into the stock “in any way, shape or form.” As the robot assistant advances further and further, people’s lives will become dramatically better.
Tesla is going to be able to sell software to Optimus customers every year that improves the technology, just as the company currently does with its electric vehicles, he said. All of the data Musk is collecting through X is going to help improve AI and robotics at Tesla, he added.
“Everything feeds each other. Every single thing he does is helping everything else he does,” Baron said.
If you think about NVIDIA Corp NVDA, it started as a gaming company, making chips for games. If you think about Amazon.com Inc AMZN, it started as a bookstore, Baron said.
“Tesla has cars. The cars are going to be like books or games for the other companies. Cars are a business for them, they have all of this other technology. This company is going to be an enormous company. I love Tesla,” Baron said.
TSLA Price Action: Tesla shares were up 0.48% at $175.62 at the time of publication, according to Benzinga Pro.
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