Billionaire investor Ron Baron has devoted much of his stock portfolio to investing in Tesla (TSLA) stock, one of the strongest of the Magnificent Seven stocks. Despite the recent selloff in tech stocks, the billionaire investor has reiterated his stance on TSLA, saying he would never sell his shares.
Speaking on CNBC’s Squawk Box this week, Baron said he was observing the ongoing market dip, looking for new opportunities, not looking to sell. According to the billionaire, about 40% of his personal wealth is invested in Tesla, along with 25% in SpaceX and 35% in his own Baron mutual funds. The stock has been generous to him, granting him approximately $8 billion in returns. In the last five years, TSLA stock has grown by over 200%.
Shares in Tesla (TSLA) stock continue to decline following the approval of Elon Musk’s $1T bonus payment plan last week. At the Tesla shareholder meeting, Elon Musk was granted his $1T pay package that will pay out as Tesla achieves several sales targets in the coming years.
Despite the recent 5% dip this past week, analysts like Wedbush’s Dan Ives remain bullish on Tesla shares, and he believes the automaker’s AI future is where investors should be looking. “In my opinion, it’s going to be the most important chapter ever in Tesla’s story,” Ives said from the Yahoo Finance Invest event in New York. Ives has called the passage of Musk’s pay package a “bright green light” for Tesla’s AI and autonomous tech plans, and has an Outperform rating on the stock and a Street-high $600 price target.
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”You have to have the understanding of what Musk and Tesla are trying to do here,” Ives added. “They’re building out the AI future, autonomous. I mean, they’re going to own 80% of the autonomous landscape, in my opinion, over the next decade.”