Summary
– Ron Baron believes Tesla stock is set to see massive gains with the introduction of Robotaxi and a new vehicle lineup
– Tesla’s stock has felt pressure recently but Baron believes the only way for it to go now is up
– Tesla announced the unveiling of a dedicated Robotaxi vehicle on August 8
– Tesla will launch a new, updated vehicle lineup with affordable models sooner than expected
– Baron believes that Robotaxi and Full Self-Driving will be the main catalysts for an increase in Tesla’s valuation
Article
Renowned investor Ron Baron has expressed confidence in Tesla’s stock, believing that it is poised for substantial gains in the near future. Despite facing some pressure recently, with the stock only up by 1 percent compared to a year ago and down by 32 percent since the beginning of 2024, Baron is optimistic about Tesla’s prospects. He attributes this positive outlook to the imminent introduction of Robotaxi and a new vehicle lineup by the electric automaker.
During an interview on CNBC’s Squawk Box, Baron stated that he believes “now is the bottom” for Tesla’s stock and emphasized that he expects significant upward movement in its value. With a portfolio that has seen exponential growth over the past few years and holding over $1.5 billion in Tesla shares at one point, Baron’s bullish sentiment is based on the potential of upcoming developments in the company.
Tesla’s Q1 2024 Earnings Call provided some clarity on key questions surrounding the company’s future, such as the release of a dedicated Robotaxi and progress in achieving Full Self-Driving capabilities. Baron recounted an experience he had with Tesla in California, where he witnessed the capabilities of the upcoming Robotaxi firsthand. He believes that the vehicle will soon be able to operate autonomously without any human intervention.
In addition to the Robotaxi, Tesla is also set to introduce a new, updated vehicle lineup that includes affordable models. This strategic move aims to accelerate the launch of new models ahead of schedule, with production expected to start in late 2025. This decision, as outlined in Tesla’s Q1 2024 Shareholder Deck, will enable the company to grow its vehicle volumes efficiently during uncertain times.
Baron’s stance on Tesla’s stock remains unwavering, with no plans to sell any shares. He anticipates a substantial increase in Tesla’s valuation driven by the catalysts of Robotaxi and Full Self-Driving technology. Despite challenges such as slowing demand, increasing vehicle inventories, and competition from rival automakers, Baron believes that Tesla’s unique positioning as a software-focused company sets it apart in the industry.
Overall, Baron’s confidence in Tesla’s stock is fueled by the belief that the company is on the cusp of significant growth. With the introduction of innovative technologies such as Robotaxi and advancements in Full Self-Driving capabilities, Tesla is poised to disrupt the automotive industry and solidify its position as a leader in the electric vehicle market. Investors and analysts will be keenly watching how these developments unfold and impact Tesla’s stock performance in the coming months.
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