Billionaire investor Ron Baron says Tesla’s (TSLA) long-term value remains vastly underestimated, with the potential for a multi-fold increase over the coming years.
In a new CNBC interview, Baron, who took Baron Capital from $100 million in assets to $45 billion, says he sees TSLA exploding 6x on the back of the firm’s Optimus robotics project.
“I’m thinking about $2,500 of where his stock’s going to be, Tesla’s stock’s going to be in 10 years. Well, Optimus is, I think, for him, the next sort of leg of this whole story. He thinks it’s the biggest thing ever. And so next year, it’s going to be a million of those units. And he thinks 10 million after that, building a production line right now for a million, and it’s going to be 10 million, it’s going to be 100 million.
It’s a billion a year that he’s going to be able to make in these robots. Think about that, a billion a year, $20,000 robots that are going to be labor-saving, make everyone’s life easier.”
Earlier this month, Musk said at Tesla’s 2025 Annual Shareholder Meeting that he wants to produce “tens of billions of Optimus robots out there.”
According to Baron, Optimus represents Musk’s pivot from sustainable energy to sustainable abundance.
“Sustainable energy is what he had before. Now it’s sustainable abundance. He thinks everyone’s going to have much better lives, much more prosperous lives, and then maybe there’ll be a beach on Mars somewhere.”
Baron also calls Musk a modern-day Da Vinci.
“This is not like Rockefeller, or like Carnegie, or like Mellon, or like Morgan, Ford, the great industrialists who built this nation. This guy is like Da Vinci, and an artist.”
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