“‘We do need to knock the ball out of the park several times to achieve that value, but I think we can.’”
That was the head of electric-vehicle company Tesla
TSLA,
weighing in on X in the wee hours Thursday, on what it would take for his company to reach a multitrillion-dollar market capitalization.
Musk was responding to a comment from the billionaire CEO of Baron Capital, Ron Baron, who told MarketWatch in an interview that he expects Tesla shares to continue to rise and achieve a market cap of $4 trillion within 10 years, up from $653.78 billion at Wednesday’s market close.
Baron Capital has beaten the market thanks in part to bets on Tesla that stretch back to 2014, amid unwavering faith from billionaire Baron, who appears on MarketWatch’s list of 50 most influential people in markets for 2023.
On top of his attention-grabbing remark about Tesla’s market-cap prospects, Baron said the Musk-led rocket-launch company Space Exploration Technologies Corp., or SpaceX, could be “even bigger than Tesla in the 2030s.”
For now, Tesla has its work cut out for it in pursuit of Baron’s $4 trillion call. Tesla shares have climbed 67% this year but haven’t fully recovered from their 2022 drubbing. A drop of nearly 20% in October marked the worst month for Tesla since April, following disappointing third-quarter results and Musk’s knocking down some of the optimism around the Cybertruck.
Still, Tesla shares were up 4% on Thursday and headed for their best day in a month, amid hopes the Federal Reserve was done hiking interest rates. Overnight, data showed Tesla’s China sales rose 0.6% in October from a year ago, though they fell 2.6% from September.
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