Billionaire investor Ron Baron, a longtime Tesla bull, believes Elon Musk’s electric vehicle manufacturer has hit a bottom. “It’s going to go up huge. Now is the bottom. What they are doing is going into robotaxis and going to make the low-cost cars,” Baron said on CNBC’s “Squawk Box” on Thursday. “Overall, they have to do five million new cars.” The Baron Capital chairman and CEO previously revealed that his firm has made about 20 times its investment in Tesla since he first bought the stock in 2014. Tesla is the biggest holding in Baron’s oldest and biggest fund, Baron Partners Fund (BPTIX), accounting for more than 30% of the portfolio. The fund is down more than 17% this year amid a 35% decline in Tesla shares. “So what I think about the reason the stock is down is people were concerned he was going to abandon the idea of having a low-cost car and go all in to robotaxis,” he said, referring to Tesla CEO Musk . Austin, Texas-based Tesla got a boost earlier this week after Musk told investors that production of new, affordable EV models could begin sooner than expected. Still, Tesla reported a 9% drop in first-quarter revenue, the biggest decline since 2012, as the company weathers the effect of ongoing price cuts. TSLA 1Y mountain Tesla shares over past 12 months. Baron said he is also bullish about the possibility of Tesla one day selling its autonomous driving technology to other carmakers, given the amount of data it will collect. Baron is the rare active manager who has outperformed the market since the 1980s. The 81-year-old founded Baron Capital in 1982, and the firm says 16 of his 19 mutual funds — representing 98.8% of the firm’s assets under management — have beaten their benchmark since inception.
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