Why did Wall Street icon Ron Baron invest $300 million into Tesla? Here's the real reason [Video]

How big does Wall Street investing icon Ron Baron believe Tesla can be? According to Investors Business Daily*, Ron Baron proclaimed: “I think there’s a very good chance that I could own this stock for 10, 15 or 20 years... I think this could be one of the largest companies in the U.S. and the whole world.” Baron's commentary sparked an upward surge in Tesla Motors [NASDAQ: TSLA] stock during the day of his interview: "Tesla stock ended 5.3% higher at 232.34... retaking its 50-day moving average for the first time in more than a month." Wow. This was pretty significant... so who is Ron Baron anyway? 

Image: News Herder

Full disclosure: I've invested in some of Baron's funds and actually considered them a bit stodgy as the firm will typically hold a stock for 4–5 years, sometimes as many as 10–15 years. Renowned mutual fund manager and investment icon Ron Baron of Baron Capital is well-known for his conservative, long-term approach to stock picking. He's been compared to Warren Buffett (both for his investing style and outstanding track record), and he's also previously forecasted that Tesla Motors (TSLA) investors will make 10 times their money over the next ten years.

Instagram: @model3.news

With that said, his investing analysis (and advice) are greatly sought after by many on Wall Street. In addition, it's further reported that Baron said, "I go to Tesla every three or four months... I look at the factory and see how much is changing and talk to them on a regular basis. The competition is not anywhere." For context, Baron Capital purchased $300 million in Tesla stock, accumulating 1.5 million shares over about three years. Note: Baron did about a 30-minute interview on CNBC this week and we tracked down the specific segment where he discusses Tesla in detail...  

Source: CNBC

And, Baron is not alone in his positive sentiment for Tesla. Other Wall Street analysts are also predicting a bright future for Tesla. Last week, according to Barron's, Wall Street analysts Rob Cihra and Edison Yu at Sterne Agee CRT write, "We initiate Tesla (TSLA) at BUY with our $300 price target based on a P/E of 17x and EV/EBITDA of 8x looking out to 2019E... we think that is the price for nearly open-ended growth in a technology innovator targeting trillion dollar auto and energy markets, where fundamental disruption is taking place in 1) electrification, 2) software/ autonomous driving and 3) on-demand transport."

Instagram: @model3.news

This follows another Wall Street analyst, Bill Selesky at Argus who sees further upside for Tesla with an, "outlook for improved operational and financial performance, including rapidly accelerating earnings in 2017... it is poised for much stronger performance in the coming quarters... Looking ahead, we expect Tesla to meet or exceed its production targets and to achieve positive cash flow in FY16. We also look for a significant acceleration in non-GAAP earnings in 2017." Selesky reiterated his Buy rating with a $333 price target on the stock. 

Instagram: @model3.news

Only time will tell if Ron Baron and these other Wall Street analyst forecasts come to pass, but, nevertheless... it's still encouraging to see many who analyze Tesla Motors so positive about the electric vehicle company's outlook. We'll be sure keep you posted on TSLA news as it unfolds over the coming weeks.

===

*Source: Investors Business Daily

USD
  • US Dollar (USD)
  • Euro (EUR)
  • British Pound (GBP)
  • Canadian Dollar (CAD)
  • United Arab Emirates Dirham (AED)
  • Albanian Lek (ALL)
  • Afghan Afghani (AFN)
  • Armenian Dram (AMD)
  • Angolan Kwanza (AOA)
  • Argentine Peso (ARS)
  • Australian Dollar (AUD)
  • Aruban Florin (AWG)
  • Azerbaijani Manat (AZN)
  • Burundian Franc (BIF)
  • Barbadian Dollar (BBD)
  • Bangladeshi Taka (BDT)
  • Bahamian Dollar (BSD)
  • Bahraini Dinar (BHD)
  • Bermudan Dollar (BMD)
  • Belarusian Ruble (BYN)
  • Belize Dollar (BZD)
  • Bhutanese Ngultrum (BTN)
  • Bosnia-Herzegovina Convertible Mark (BAM)
  • Brazilian Real (BRL)
  • Bolivian Boliviano (BOB)
  • Botswanan Pula (BWP)
  • Brunei Dollar (BND)
  • Bulgarian Lev (BGN)
  • Congolese Franc (CDF)
  • Swiss Franc (CHF)
  • Chilean Peso (CLP)
  • Chinese Yuan (CNY)
  • Colombian Peso (COP)
  • Costa Rican Colon (CRC)
  • Czech Republic Koruna (CZK)
  • Djiboutian Franc (DJF)
  • Danish Krone (DKK)
  • Dominican Peso (DOP)
  • Algerian Dinar (DZD)
  • Egyptian Pound (EGP)
  • Ethiopian Birr (ETB)
  • Fijian Dollar (FJD)
  • Falkland Islands Pound (FKP)
  • Gibraltar Pound (GIP)
  • Ghanaian Cedi (GHS)
  • Gambian Dalasi (GMD)
  • Guinean Franc (GNF)
  • Guatemalan Quetzal (GTQ)
  • Georgian Lari (GEL)
  • Croatian Kuna (HRK)
  • Honduran Lempira (HNL)
  • Hong Kong Dollar (HKD)
  • Haitian Gourde (HTG)
  • Hungarian Forint (HUF)
  • Indonesian Rupiah (IDR)
  • Israeli New Shekel (ILS)
  • Icelandic Krona (ISK)
  • Indian Rupee (INR)
  • Iraqi Dinar (IQD)
  • Iranian Rial (IRR)
  • Jamaican Dollar (JMD)
  • Japanese Yen (JPY)
  • Jordanian Dinar (JOD)
  • Kenyan Shilling (KES)
  • Kyrgystani Som (KGS)
  • Cambodian Riel (KHR)
  • Comorian Franc (KMF)
  • South Korean Won (KRW)
  • Kuwaiti Dinar (KWD)
  • Cayman Islands Dollar (KYD)
  • Kazakhstani Tenge (KZT)
  • Lebanese Pound (LBP)
  • Sri Lankan Rupee (LKR)
  • Liberian Dollar (LRD)
  • Lesotho Loti (LSL)
  • Libyan Dinar (LYD)
  • Moroccan Dirham (MAD)
  • Moldovan Leu (MDL)
  • Malagasy Ariary (MGA)
  • Myanmar Kyat (MMK)
  • Macedonian Denar (MKD)
  • Macanese Pataca (MOP)
  • Mauritian Rupee (MUR)
  • Maldivian Rufiyaa (MVR)
  • Malawian Kwacha (MWK)
  • Mexican Peso (MXN)
  • Malaysian Ringgit (MYR)
  • Mozambican Metical (MZN)
  • Namibian Dollar (NAD)
  • Nepalese Rupee (NPR)
  • New Zealand Dollar (NZD)
  • Nicaraguan Cordoba (NIO)
  • Norwegian Krone (NOK)
  • Omani Rial (OMR)
  • Panamanian Balboa (PAB)
  • Pakistani Rupee (PKR)
  • Papua New Guinean Kina (PGK)
  • Peruvian Nuevo Sol (PEN)
  • Philippine Peso (PHP)
  • Polish Zloty (PLN)
  • Qatari Rial (QAR)
  • Romanian Leu (RON)
  • Russian Ruble (RUB)
  • Rwandan Franc (RWF)
  • Saudi Riyal (SAR)
  • Sao Tome and Principe Dobra (STD)
  • Serbian Dinar (RSD)
  • Seychellois Rupee (SCR)
  • Singapore Dollar (SGD)
  • Syrian Pound (SYP)
  • Swedish Krona (SEK)
  • New Taiwan Dollar (TWD)
  • Thai Baht (THB)
  • Tanzanian Shilling (TZS)
  • Trinidad and Tobago Dollar (TTD)
  • Tunisian Dinar (TND)
  • Turkish Lira (TRY)
  • Solomon Islands Dollar (SBD)
  • Sudanese Pound (SDG)
  • Sierra Leonean Leone (SLL)
  • Surinamese Dollar (SRD)
  • Swazi Lilangeni (SZL)
  • Tajikistani Somoni (TJS)
  • Tongan Paanga (TOP)
  • Turkmenistani Manat (TMT)
  • Ukrainian Hryvnia (UAH)
  • Ugandan Shilling (UGX)
  • Uruguayan Peso (UYU)
  • Uzbekistan Som (UZS)
  • Venezuelan Bolivar (VEF)
  • Vietnamese Dong (VND)
  • Vanuatu Vatu (VUV)
  • Samoan Tala (WST)
  • Central African CFA Franc (XAF)
  • CFP Franc (XPF)
  • Yemeni Rial (YER)
  • South African Rand (ZAR)