Billionaire investor Ron Baron isn’t worried about the recent drop in tech stocks and has no plans to sell his shares of EV maker Tesla (TSLA). In fact, as a longtime believer in growth investing, Baron sees this dip as a chance to find good deals, especially since many major tech companies have seen sharp declines lately. When asked on CNBC’s Squawk Box what he’s doing during this market pullback, he simply said that he’s observing and looking for new opportunities.
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Baron is especially confident in Tesla, which has been one of his biggest and most well-known investments. Interestingly, he shared that he once sold 30% of Baron Funds’ Tesla holdings because of pressure from clients and the media, but personally, he hasn’t sold any shares. In fact, about 40% of his personal wealth is invested in Tesla, along with 25% in SpaceX and 35% in his own Baron mutual funds.
Over the years, Baron has made around $8 billion from Tesla and thinks he could earn five times that amount in the next ten years. He also reminded viewers of a promise that he made to the board of his mutual funds: if they let him invest in public companies, he would never sell his personal shares until all of his clients had sold theirs first. Because of that promise, he says he’s committed to holding onto his Tesla and SpaceX shares for life.
What Is the Prediction for TSLA Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 10 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $382.54 per share implies 5.4% downside risk.
