Baron's Tesla Call
Baron, a billionaire mutual fund manager, said Tuesday morning on CNBC's "Squawk Box" that Tesla's stock surge over the past few months is merely the "beginning."
Tesla will ultimately be one of the world's largest companies, but has lots of work to do to get there, he said.
The automaker has demonstrated an ability to overcome hurdles and challenges over the years, Baron said.
Most notably, Tesla was expanding rapidly and simultaneously fighting against auto dealers who tried to prevent the electric automaker from selling directly to consumers, he said.
"But now things have all come together."
Tesla In 'Catch Up' Phase?
From 2014 through last summer, Tesla's stock price hasn't changed much, but as an investor Baron said he was more focused on watching the business.
During that time period, Tesla's annual revenue rose from $2.8 billion to $25 billion. Current estimates call for 2020 revenue to come in at around $32 billion.
The stock's recent momentum is merely a "catch up" phase, Baron said.
Tesla Price Action
Tesla should be able to expand to $100 billion in annual revenue in four years before hitting $1 trillion in 10 years, Baron said. But the growth won't end there, as Baron said revenue will merely continue to grow.
Tesla shares were rallying by 13.53% to $885.50 at the time of publication Tuesday.
Photo courtesy of Tesla.