- • Despite claiming that Tesla (TSLA:NASDAQ) would rise to $2,000 in the next ten years, billionaire investor Ron Baron sold 1.8 million shares for clients.
- • According to Baron, the shares were sold because they were becoming too high a percentage of certain portfolios.
- • In contrast, Ron Baron claimed in June 2020 that he believes Tesla has “ten times more to go” in terms of growth. He also predicted that SpaceX will expand by a factor of 20 in the next ten years. 1.6 million Tesla shares and 814,595 shares of privately owned SpaceX were held by Baron’s eponymous investment company at the time. The billionaire buy-and-hold investor also mentioned that he would like more cash to buy more Tesla stock.
- • As of February 28, 2021, Baron Capital owned more than 6.1 million Tesla shares
Baron has sold 1.8 million Tesla shares for clients since August, despite predicting the stock would rise to $2,000 in the next ten years. Elon Musk’s Tesla, according to billionaire investor Ron Baron, still has plenty of space for expansion.
Baron, a long-time Tesla shareholder, announced on Thursday that his company, Baron Capital Management, had sold the stock because it had grown to be too big a percentage of some portfolios.
“It was painful selling every single share,” he said, adding that he has not sold any of his 1.1 million shares in the electric vehicle manufacturer. In regards to the selling of their Tesla shares, he said “risk mitigation” was sufficient for his clients.
As of February 28, Baron Capital owned more than 6.1 million Tesla shares. They were bought for $42.34 per share on average. From August to February, the firm announced selling 1.8 million Tesla shares. 1.7 million of those shares were sold in the last six months, according to Baron. According to the firm, about 1.2 million of those shares were sold for $400 to $900 each.
Tesla’s stock has risen 338 percent in the last year, to $653.20 per share. It has a market capitalization of $619.2 billion. It is going almost like Baron’s speculation!
Baron said that he intends to keep his Tesla stock for “at least 10 years,” and that he told Tesla CEO Elon Musk that he “will be the last out.”
“We’re looking for a lot more,” Baron said. “I think in 10 years our target is $2,000 a share.”
In June, Baron said that he believes Tesla stock has “ten times more to go” on the upside. Since then, the stock has risen sharply. Then, in October, Baron predicted that Tesla will grow to be a $2 trillion company.
Outside of Tesla, Baron has diversified his investments in electric and autonomous vehicles. Most notably, he mentioned that his firm is a shareholder in Rivian, a privately held electric vehicle start-up that will compete with Tesla in the near future, as well as Cruise, a GM-owned autonomous vehicle venture. Since 2019, the company has raised approximately $8 billion. In January, Baron’s firm paid $10 million for more than 1.2 million shares of Cruise.
Baron said he’s interested in other EV start-ups but wouldn’t name any. Several other firms have gone public through reverse mergers with special purpose acquisition companies, or are preparing to do so.
“If you think all these companies starting up are going to make it, I think it’s a dream,” Baron said. “I think it’s astonishing they’re getting so much capital.”