Gary Zhou 
- 🚀 Legendary investor Ron Baron believes Tesla’s stock has hit the bottom and is set for massive gains with the introduction of Robotaxi and a new vehicle lineup.
- 💸 Baron, a long-time Tesla bull, sees the electric automaker’s stock “going up huge” from its current level of around $166.
- 🤖 Baron claims to have experienced a Tesla vehicle driving autonomously without human intervention during a recent visit to the company’s California facility, suggesting the Robotaxi capability is imminent.
- 🚗 Tesla plans to unveil a dedicated Robotaxi vehicle on August 8 and has announced plans for an updated, more affordable vehicle lineup to accelerate new model launches.
- 💎 Baron remains committed to holding his Tesla shares, expecting the stock’s valuation to increase substantially driven by the Robotaxi and Full Self-Driving capabilities.
- 📈 Baron believes Tesla’s future lies in its software capabilities rather than just being an automaker, aligning with the idea of valuing the company based on its technological advancements.
Tesla’s stock has been on a rollercoaster ride lately, with bearish sentiments surrounding slowing demand, increasing vehicle inventories, and loss of market share in key regions. However, legendary investor and long-time Tesla bull Ron Baron remains unfazed, firmly believing that the electric automaker’s stock has bottomed out and is set for a massive rally.
Baron’s Bullish Stance: “Now is the Bottom”
In a recent interview with CNBC’s Squawk Box, Baron emphatically stated, “Now is the bottom,” expressing his conviction that Tesla’s stock has reached its lowest point. Despite the stock being up only 1% compared to a year ago and down 32% since the beginning of 2024, Baron sees this as an opportune moment for investors to capitalize on the company’s imminent growth catalysts.
“It’s going to go up huge,” Baron asserted, when asked about the timing of the anticipated surge. His unwavering confidence stems from Tesla’s upcoming product launches and technological advancements, which he believes will propel the company’s valuation to new heights.
The Robotaxi Revolution
One of the key drivers behind Baron’s bullish outlook is the impending launch of Tesla’s dedicated Robotaxi vehicle, scheduled for unveiling on August 8. According to Baron, he recently experienced a Tesla vehicle driving autonomously without human intervention during a visit to the company’s Hawthorne Design Studio in California.
Baron recounted how the vehicle successfully navigated challenging scenarios, such as a pedestrian waving the car on, while seamlessly transporting him and others to Steve Jobs’ former residence upon request. This first-hand experience has solidified Baron’s belief in the imminent arrival of the Robotaxi, a development that could disrupt the transportation industry and unlock new revenue streams for Tesla.
A More Affordable Vehicle Lineup
In addition to the Robotaxi, Tesla has announced plans to accelerate the launch of a new, updated vehicle lineup featuring more affordable models. By leveraging a blend of existing and next-generation platforms, Tesla aims to prudently grow its vehicle volumes in a more capital-efficient manner, even during periods of economic uncertainty.
While this approach may result in less cost reduction than previously expected, it enables Tesla to expand its product offerings and cater to a wider consumer base, potentially boosting sales and market share.
Valuing Tesla’s Software Prowess
Baron’s bullish stance on Tesla extends beyond its hardware offerings. He firmly believes that the company’s true value lies in its software capabilities, aligning with the notion of valuing Tesla as a technology company rather than merely an automaker.
The development of autonomous driving technology, exemplified by the Robotaxi and the Full Self-Driving (FSD) system, is seen as a game-changer that could significantly increase Tesla’s valuation. Baron’s commitment to holding his Tesla shares underscores his confidence in the company’s ability to leverage its software expertise and technological advancements to drive sustained growth.
Unwavering Conviction
Despite the challenges and skepticism surrounding Tesla’s stock, Baron remains steadfast in his conviction. He has been one of the biggest winners in terms of Tesla stock ownership, with his portfolio increasing multifold over the past several years and holding over $1.5 billion in shares at one point.
While the stock has faced pressure recently, Baron’s unwavering belief in Tesla’s future prospects and his long-term investment horizon position him as a formidable advocate for the electric automaker’s success.
