Tesla stock will rise 550% and SpaceX’s valuation will triple by 2030 under Elon Musk, top investor says


Elon Musk.Mario Tama/Getty Images

  • Fund manager David Barron broke down his overly optimistic views on Elon Musk’s Tesla and SpaceX.

  • Tesla could rise in value by 550%, and SpaceX could triple in value by 2030, he told Bloomberg.

  • Both companies were the largest holdings in Barron’s Fund as of December 31, 2023.

Tesla shares fell this week after a gloomy earnings outlook, but fund manager David Baron remains optimistic about Elon Musk’s automaker, as well as rocket producer SpaceX.

Tesla shares are expected to gain about 550% to reach $1,200 per share by 2030, and SpaceX is expected to triple in value over the same period, according to a report. Recent interview conducted by Bloomberg.

Baron runs the Baron Focused Growth Fund, which counted Tesla and SpaceX as its largest holdings as of December 31, 2023. The fund is up 28% in 2023, outpacing the S&P 500’s gain of 24%.

Baron told Bloomberg that the growth outlook for Musk’s companies remains strong, even if it is moderated from previous calls.

“While it may not be growing 50% per year as the company thought, this year in a difficult environment we are still growing volume 15% to 20% per year and bringing us a gross profit of $7,000 per car,” Barron said.

His comments come on the heels of a reportedly tough week for Tesla Revenues and profits missed estimatesHe warned of a slowdown in production in 2024. The stock fell 12% on Thursday after turbulent results and earnings that one analyst called “Train wreck“.

“This was the most realistic view I have seen from Tesla,” Gene Munster, managing partner at Deepwater, said in an article. interview with CNBC Wednesday.

Meanwhile, Barron’s expects SpaceX’s valuation to rise 20% this year. In the long term, he sees it doubling within three years and tripling by 2030. Bloomberg previously reported that the company is worth more than 175 billion dollars.

Tesla’s allocation into Baron’s fund is crucial to his ambition to increase his total assets to $2 billion, up from current levels of about $1.3 billion.

One reason Barron’s is bullish on Musk is that the world’s richest person still owns a significant stake in his companies. Baron says he looks for these ownership levels when deciding where to invest.

“[Musk’s] “Our interests are aligned with ours. He will not do anything stupid to change the course of companies,” Barron emphasized.

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