Tesla To $6,000 And SpaceX To The Moon?

Video Length: 00:16:10

Did you hear the one about the investor who just raised her price target on Tesla (TSLA - Free Report) shares from $4,000 to $6,000 by 2025? In the video, I tell you her name and firm and exactly why she's so bullish. The answer may surprise you as much as it did me.

I also remind investors that fund manager and early Tesla bull Ron Baron predicted in 2017 that the stock would hit $1,000 by this year. Baron suffered some volatile fluctuations in his investment's value since then, but in an interview with Becky Quick on CNBC last August, he revealed his steadfast bullish commitment despite Elon Musk's "self-inflicted wounds."

Baron believes that Tesla, with its diverse renewable energy focus, wide and growing appeal for excellent cars, and international expansion could hit $1 trillion in revenues by 2030.

His Baron Capital still owned more than 1.6 million shares of Tesla valued at $360 million at the time when the stock was trading near $225. Tesla was then Baron’s 13th largest holding, down from eighth in 2018, but Baron said the decline was due to value depreciation, not the firm selling shares.

In the Q3 shareholder letter from Baron Partners Fund in November, here was the update from Ron...

"Tesla’s stock stabilized as investors build conviction around Model 3 demand trends and expanding margins. Tesla’s China factory is ahead of schedule, and investors anticipate the Model Y will positively impact the company’s P&L. We continue to expect significant value creation for Tesla’s stakeholders."

And to learn more about the market psychology of TSLA stock, where investors had learned to doubt Elon Musk's projection of at least 350,000 car deliveries in 2019 -- which he surprisingly delivered on -- check out my colleague Dan Laboe in his latest edition of The 4th Revolution.

What SpaceX Success Means for Tesla

Next in the video, I go over my bull case for TSLA based on it being a completely different kind of car company -- truly a technology company as the boss of Volkswagon conceded recently -- where traditional valuation metrics don't apply to its brand of growth.

One of my arguments is that Musk surrounds himself with the best engineering talent in the world and this was proven once again on Sunday January 19 when his SpaceX successfully tested the emergency rocket abort for its Dragon crew capsule.

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Kevin Cook is a Senior Stock Strategist for Zacks Investment Research where he runs the TAZR Trader and more

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