Despite a noticeable slump in growth and profit for Tesla Inc. (NASDAQ:TSLA), fund manager David Baron foresees a significant increase in the company's stock value.
What Happened: Despite the company's disappointing outlook for 2024, Baron, who manages the Baron-Focused Growth Fund, remains hopeful. He predicts Tesla's stock will surge to a staggering $1,200 by 2030, indicating a potential 550% increase from its current standing, reported Bloomberg.
Baron also estimates the stock will bounce back to approximately $300 within the next 12 months, showing a rise from its closing figure of $183.25 on Friday. He trusts in the capacity of Tesla's CEO Elon Musk to guide the company through the current turbulence in the industry, the report said.
As of Dec. 31, Tesla and Musk's private rocket manufacturing company SpaceX were Baron's fund's largest holdings. In 2023, the fund experienced a growth of 28%, surpassing the S&P 500's 24% gain.
"His (Elon Musk's) interests are aligned with ours," Baron said, as per the report. "He's not going to do anything stupid to change the trajectory of the companies."
Tesla's Outlook for 2024: On Wednesday, Tesla said that its volume growth rate in 2024 will be lower as compared to 2023 as the company is working on its next-generation vehicle. Musk during the earnings call also hinted at a 'challenging' production ramp for the lower-priced EV, expected to commence production in the second half of 2025. As a result, Tesla's stock fell 13.6% since Monday.
Baron On SpaceX: For SpaceX, Baron expects its valuation to rise by 20% in a year, double in three years, and triple within five years, the report said. The private company was valued at $180 billion in a recent tender offer.
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Read More: Elon Musk Says Tesla Will Buy Chips From AMD, Invest Over $500M On Nvidia Hardware
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