Don’t hit that short button just yet. Betting against Elon Musk has rarely been a way to make money.
Tesla (NASDAQ:TSLA) stock went parabolic again on Tuesday, after surging nearly 20% yesterday, as billionaire investor Ron Baron told CNBC the EV maker has the potential to top $1 trillion in revenue in a decade and continue to grow from there.
“It’s no where near ended at that point and time,” Baron said Tuesday morning on Squawk Box. “There’s a lot of growth opportunities from that point going forward.”
Baron, whose investment firm holds more than 1.62 million Tesla shares, believes the electric car company “could be one of the largest companies in the whole world.” Baron also said he sees Tesla’s recent surge – ticker is up 394% since June – as “just the beginning” and that his firm, Baron Capital – which bought TSLA at an average cost of $219 a share – will not sell a single share.
Tesla shares were trading 15% higher in pre-market trading hours Tuesday, printing the tape above $900. The stock spiked after Argus Research reaffirmed a “Buy” rating on the ticker, raising their price target by 45% to a new Wall Street high of $808 a share. Tesla’s stock jump is also based on the co.’s stronger-than-expected 4Q earnings reported last week.
Tesla’s stock hit $908 per share for the first time Tuesday. Shares jumped as much as 130 points before easing back down to $880. The stock, which has boosted the company’s market cap to $140 billion, has rallied nearly 190% year-over-year and 109% year-to-date.
TSLA continues to be heavily shorted. Short-seller interest hovers around $16 billion — or 24.4 million shares.
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