Ron Baron, Tesla’s majority shareholder and billionaire investor, reckons the company will earn $1 trillion in 10 years. Barron’s eponymous investment company holds nearly 1.63 million Shares of Tesla. He said Tesla’s stock was not for sale, saying it was just the beginning.
The stock closed up 19.9 per cent on Monday at a record high of $780, its biggest one-day gain since May 2013. The stock rose more than 6 per cent to about $833 in pre-market trading on Tuesday.
Tesla’s share price has risen nearly 220 percent in the past six months, including an increase of about 86.5 percent this year. The company’s market capitalisation is now more than $140bn, nearly three times that of General Motors but below Toyota Motor’s $227bn.
Investors shorting Tesla’s stock have lost more than $8 billion since the start of the year, according to S3 Partners, including nearly $2.5 billion in Monday’s surge.
In 2018, Mr. Barron has said Tesla could earn $1 trillion by 2030. Tesla’s revenue for 2018 was $21.5 billion, up from $11.8 billion a year earlier. The company reported revenue of $24.6 billion for 2019 last week.