Billionaire investor Ron Baron is standing by his massive Tesla investment as well as Elon Musk’s leadership for his cost-consciousness. “He’s the lowest cost person. Everything about the business is trying to drive prices lower,” Baron said Friday on CNBC’s ” Squawk Box. ” The Baron Capital chairman and CEO has been known as a longtime bull in Tesla , a stock with a 46% weighting in the Baron Partners Fund (BPTIX). The investor previously revealed his firm made over 15 times its investment in Tesla since he first bought the EV stock in 2014. Baron thinks Tesla will be worth four-to-five times more by 2030 , and it will become the largest company in the world in 10 years. “Think about it as a technology company is providing services to their own company and to others. They can’t possibly be matched by anyone else,” Baron said. “They have data technology. They’ve made cars cheaper than it was when Ford makes one of these cars. … Our company now makes about eight or $9,000 in profit a car.” Baron is the rare active manager who has outperformed the market since the 1980s. The 80-year-old investor founded Baron Capital in 1982, and 16 of his 19 mutual funds representing 98.8% of the firm’s asset under management have beaten their benchmark since their inception dates.
This story originally appeared on CNBC
