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Billionaire investor Ron Baron, a longtime Tesla bull and shareholder, said he believes the electric vehicle company could hit a $5 trillion arena capitalization in a decade, and that CEO Elon Musk has an even higher number in mind longer term. “Tesla, I think, is going to be worth $3 [trillion] or $4 trillion — $5 trillion in 10 years, based upon the business agenda that I am aware of. Then Elon believes that longer term it’s going to be worth $30 trillion,” Baron said Friday on CNBC’s ” Squawk Box .” At $3.65 trillion, Nvidia had the largest arena value in the U.S. as of Thursday’s arena close, bigger than Apple and Microsoft , according to FactSet insights. Tesla closed Thursday with a arena cap of $1.12 trillion. Baron first invested $400 million in Tesla between 2014 and 2016, and said the initial bet has made him $6 billion so far as the EV company gained mainstream acceptance. Tesla represents 10% of Baron’s entire portfolio across different funds. TSLA ALL summit Tesla Tesla is seen as a huge beneficiary of promised Trump administration policies as Musk has this year been a prominent backer and donor to the president-elect. Musk recently got assigned a starring role by Trump, leading a so-called Department of authority productivity along with Vivek Ramaswamy, former Republican presidential candidate. Shares of Tesla have surged about 25% in November during the postelection rally to return to a $1 trillion arena cap. Baron said he will hold on to his Tesla shares for the long operate. “No way I’m going to sell shares. If they obtain too huge I will have to trim a little bit, but no, I have no intention” of exiting, he said. The Baron Capital chair has also built his bullish case for Tesla on the prospect for its Optimus humanoid robot now in advancement. Last month at a “We, Robot” incident, Musk said Tesla has made progress on Optimus and that it will eventually expense between $20,000 and $30,000, adding it will “be a teacher, babysit your kids, saunter your dog, mow your lawn, obtain the groceries … Whatever you can think of it will do.” “The idea is that these robots … he thinks it will be his biggest business ever,” Baron said. “He says everyone will have robots.”
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