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Tesla Will Be Worth $1T By 2025, Billionaire Investor Predicts

Tesla.Joseph Thornton/Flickr

Despite what stock brokers might like to claim, no one can really know which way the stock market is going to go, but analysts can make predictions when it comes to the fate of companies. In the case of Tesla, one billionaire investor is expecting that Elon Musk’s technology company is going to become one of the richest firms in the world. In fact, he thinks that it will be worth $1 trillion by 2025.

Ron Baron, a major player in the investment world who is known for expertly playing the long game recently spoke to CNBC and proclaimed that the next 13 years are going to be big for Tesla. He also explains how he made hundreds of millions of dollars by investing in the company.

"I think that in 2020 we're going to make from present prices about four times our money," Baron told the network’s “Squawk Box” segment. "I think in 2025 we can make another triple, and in 2030 it can be another triple. We have brought shares of Tesla, about 1.6 million shares over a 3½-year period of time. Our average cost is about $208 a share."

Thanks to this investment strategy, Baron was able to amass over $300 million. He was reticent to reveal his current investment moves for obvious reasons.

Of course, this kind of prediction isn’t likely to go down well with those in Wall Street since Tesla has always been something of a punching bag for analysts and investment firms since the company went public. Even so, Baron is convinced that Tesla is destined for great things, even with its risky acquisition of Solar City, which cost $2 billion.

According to Baron, buying the renewable energy company makes complete business sense for Tesla because selling more electric cars require an increase in energy production for American households, Futurism reports. With fossil fuel in the decline, it’s only logical that something like Solar City should pick up the slack by bolstering the capacity of the power grid.

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