Legendary billionaire investor Ron Baron recently revealed that he has added a significant amount of money to his stake in Elon Musk’s private space company, SpaceX. Apart from this, Baron also noted that his investment in Tesla has been very profitable thus far, but he believes TSLA still has a long way to go.
Baron, the founder and chief executive of investment management firm Baron Capital, shared his thoughts during a CNBC segment on Thursday. During his segment, Baron noted that he has invested in healthcare and travel companies. He also revealed that he has added $100 million to his stake in SpaceX, whose Starlink ramp is getting underway.
“The two biggest investments I’ve made in recent months are SpaceX, to which we’ve added another $100 million, and Figs… the Lululemon of healthcare. We’ve invested about $100 million there,” Baron noted. on.
As one of Tesla’s most fiery bulls, Baron also discussed his return to the electric vehicle manufacturer to date. According to the legendary investor, Baron Capital has made about 20x its investment in Tesla and he believes the company could see even more growth in the future. Ultimately, Baron noted that Tesla could very well be the largest company in the world, challenged only by SpaceX about a decade later.
“I love Tesla. We’ve been investing in Tesla for eight years now, since 2014. We’ve made about twenty times our money,” about six or seven billion dollars on a $380 million investment. going to make money. I’m so excited. I think Tesla will be the biggest company in the world in the next ten years, and in the next decade it will be challenged by SpaceX,” Baron said.
The founder of Baron Capital also highlighted Elon Musk’s remarkable strategies with his Gigafactories. According to the billionaire investor, each factory Musk builds will cost about $7 billion, but with their run rate of 1 million vehicles per year and the company’s strong gross profit per vehicle, each Gigafactory could make Tesla about $15 billion in profit per year.
“What he (Elon Musk) is doing that other people can’t possibly do is that he is now investing in a factory that makes a million cars a year, about $7 billion. Every time he sets up one of these million car factories, it costs him.” $7 billion. If they have that factory that produces a million cars, the gross profit per car is about $15,000 — they sell something for $50,000, but it costs them $35,000. That means every time he spends $7 billion, he makes $15 billion a year,” Baron said.
Disclaimer: I am long TSLA.
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