One of the most outspoken Tesla Inc TSLA bulls and investorslaid out a price target for shares of the electric vehicle leader at the start of November. The investor echoed those comments again this week during an interview.
Here’s what went into the price target and how much the stock could be worth in seven years if the targetis reached.
What Happened: An investor in Tesla since 2014, Ron Baron has been one of the most outspoken Tesla bulls and believe shares will continue to appreciate in the years to come. Baron issued a price target that could share similarities witha famous bull case from Ark Invest CEO Cathie Wood.
Baron said in late 2022 that he believes Tesla can hit $500 to $600 per share by the year 2025 and that the company could be worth $4.5 trillion in the next eight to 10 years,making it worth more than Apple and Saudi Aramco combined — a claim that Musk made in 2022.
“But that’s not including robots, that’s not including autonomous vehicles, that’s not including batteries,” Baron said at the time.
The price target came from estimating Tesla to sell around 20 million cars annually in the future, compared to around one million sold in 2022.
“In 2030, if he does 20 million cars per year, and they’re $50,000 a car, that’s $1 trillion in revenueand he gets operating profits at somewhere around 30%,” Baron said.
Baron echoed his previous comments during an appearance on CNBC Friday.
“We invested $380 million, and we’ve made about $4 billion so far and we’ve cashed in about $1.5 billion,” he said.
Baron said he recalls meeting Tesla CEO Elon Musk in 2010 and not investing until 2014. The investor said it was Musk's assertionthat unit growth was going to be 50% annually, along with several visits with the billionaire,that got him ready to invest.
“The stock is now $250. I think it’s going to be $500 in 2025 and I think in 2030, it’s going to be $1,500. That’s my targets,” he said.
Baron and his investors own 17.5 million Tesla shares today, including 5million that are personally owned by Baron.
Baron said he bought his own stake in Tesla after buying for all his investors. The investor said he will only sell his stake in Tesla after all his clients sell.
“I’ll be the last one to sell. Last in, last out,” he said.
Related Link: Tesla Bull Ron Baron Says Charging Deals Present Really Big Opportunity For EV Giant
Investing $1,000 in Tesla Stock: Investors could benefit along the way if Baron is right about his price predictions.
A $1,000 investment in Tesla stock today could buy 3.90 shares, based on a price of $256.60 at the time of writing.
Hitting a price target of $500 in 2025 would make the investment worth $1,950. This would represent a gain of 95% in two years.
Hitting a price target of $1,500 in 2030 would make the investment worth $5,850. This would represent a gain of 485% in the next seven years.
While all of this is hypothetical, Baron has been one of the big believers in Tesla, andis holding onto his sharesand placing another bet for the long haul, which could tempt more investors to join him.
Read Next: Tesla Q1 Earnings Highlights: Revenue Beat, EPS In-Line, Cybertruck Update And More
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FAQs
He forecasts Tesla stock to gain about 550% to hit $1,200 a share by 2030, and for SpaceX to triple in valuation over the same period, according to a recent interview conducted by Bloomberg. Baron runs the Baron Focused Growth Fund, which counted Tesla and SpaceX as its largest holdings as of December 31, 2023.
How much $10 000 invested in Tesla stock 10 years ago is worth now? ›
As of March 28, 2024, the price of Tesla's stock was $175.79. Ten years ago, at market close on March 28, 2014, Tesla's stock was trading at $14.16 per share. This means that $10,000 invested in Tesla in March 2014 would be worth about $124,145 today.
Will Tesla stock ever reach $1,000? ›
It's unlikely Tesla's returns going forward will come anywhere near resembling the last five years. So, investors shouldn't expect a $1,000 price per share by the end of the decade.
What will Tesla stock be worth in 2025? ›
Projections for the TSLA rate in 2025 vary significantly among analysts, with estimates ranging from a stock price above $300 to $3,000 per share. These projections are based on various factors and assumptions, including Tesla's market performance, EBITDA margins, and the broader electric vehicle market.
What if I invested $1,000 in Tesla 10 years ago? ›
This means that your $1,000 10 years ago — technically, $1,002 — would have bought 60 shares of Tesla. As of Mar. 3, 2024, those 60 shares of Tesla would be worth $12,158.40. That marks a 28.342% annual rate of return.
What will Tesla stock be worth in 2027? ›
Put differently, while some experts expect the stock price to be cut nearly in half, others foresee TSLA doubling from current levels. And we haven't yet factored in perma-bull Cathie Wood of Ark Invest, who has set a base case 2027 target price of $2,000 on Tesla.
What was Tesla's highest stock price ever? ›
The latest closing stock price for Tesla as of April 19, 2024 is 147.05.
- The all-time high Tesla stock closing price was 409.97 on November 04, 2021.
- The Tesla 52-week high stock price is 299.29, which is 103.5% above the current share price.
The answer is: $8,862.79. That's how much money you'd have today if you had invested $1,000 in Tesla (NASDAQ: TSLA) stock five years ago -- and it's a pretty nice return, right?
What would $1 000 invested in Netflix stock 10 years ago be worth now? ›
So, if you had invested in Netflix ten years ago, you're likely feeling pretty good about your investment today. A $1000 investment made in March 2014 would be worth $9,728.72, or a gain of 872.87%, as of March 4, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Will Tesla hit $2,000 a share? ›
Tesla (TSLA) stock is down more than 30% so far in 2024, but Ark Invest CEO Cathie Wood thinks "now is not the time to run for the hills." In fact, Ark has been buying the stock and thinks it could rise to $2,000 per share in the next five years, representing an increase of more than 1,000% from today's levels.
The S&P 500 index had an average annual return of 11.13% between 1973 and 2023. If Tesla stock were to grow at this average rate until 2040, TSLA stock would be worth $1,056 in 2040. This would be about 2.5x the stock's current all-time high price of $407.
Is Tesla stock good for long term? ›
On a year-to-date (YTD) performance thus far in 2024, Tesla has been absolutely slaughtered, down over 34%. This makes Tesla the worst-performing stock in the entire S&P 500 on a year-to-date basis.
What is the 5 year forecast for Tesla stock? ›
The highest prediction stood at $430.33 while the lowest sat at $33.33. As for the Tesla long term forecast, Wallet Investor has estimated a Tesla 5 year forecast of $564.24 a share. Additionally, Gov Capital, another algorithm-based forecasting service, has a baseline Tesla stock 5-year forecast of $2,326.138.
How much will a Tesla car be worth in 10 years? ›
Tesla Model Y Depreciation
| Years Old | Depreciation | Residual Value |
|---|
| 7 | $32,572 | 45.01% |
| 8 | $37,340 | 36.96% |
| 9 | $40,959 | 30.85% |
| 10 | $43,328 | 26.85% |
6 more rowsWhen it comes to the Tesla stock price prediction for 2050, Tesla stock would be trading at $4,700 in 2050 if it were to grow at the same 11.8% average rate as the S&P 500. If TSLA were to grow at the same rate as the Nasdaq 100's 17.5% average annual return, it would be worth $18,900 by 2050.
