folks this is huge billionaire investor Ron Baron a guy who manages about $50 billion in assets just dropped a massive bombshell about Tesla it is insane we heard Ron Baron over the years being bullish on Tesla we heard him say a lot of incredible things about ilon musk and the company but we have never ever ever heard him say this this is a whole new territory uncharted waters as far as I'm concerned now in this video I'm going to do the same thing I do in every single video I put out I do not hold
my audience hostage the bottom line comes first the video of his interview comes second the analysis comes third however I urge you to stay for the analysis because last time we did this kind of video I said the Testa is going to go from 250 to 400 back in July a lot quicker than people think and since that moment the stock went from 250 to 350 so people have made a lot of money listening to these sort of analysis videos so I urge you to stay but if you got to go you got to go
that's fine here's the bottom line don't click nothing don't smash nothing don't buy nothing the bottom line is that Ron Baron went on CNBC and he said look folks Tesla is not even close to being complete yet your your faith in Elon Musk um sounds like it's stronger than ever is this a stock that you would sell just from the perspective of if it goes up so much it's going to be a bigger and bigger part of your portfolio so I think that it's it's right now worth a trillion dollars and with Bitcoin trillion 7
uh so would I rather have two Teslas or one Bitcoin you know uh so basically the way I think about it is that Tesla I think is going to be worth three or4 trillion doll5 trillion in 10 years based upon the business plan that I I'm aware of and then Elon believes that longer term it's going to be worth 30 trillion it's now being worth a trillion do you believe that well um the people from Goldman Sachs were doing something for me uh one of the executives in California who's being groomed I think to be
the next CEO of Goldman Sachs uh he and two other three other people from Goldman came to visit me this past summer at my house in New Hampton and uh they were telling me his name is d uh they were telling me that uh El you know Goldman then was struggling to get the business of their business value from 150 billion in the market to 180 billion so Elon said why don't you come to my plant and Hall Alto where I have Optimus robots I want you to see what that is so he says so
we go there I take the board and we go out he says Ron it's toopan it's amazing you got to go see this so I went to see it and there robots walking all over and the idea that he has is that so here we have there wouldn't be any EVS without him there wouldn't be any autonomous driving without him there wouldn't be any Rockets you use over and over without him you wouldn't have any starlink without him so so the idea is that this this Optimus robots he thinks is going to be his biggest
business ever and he thinks that he says everyone's going to have robots and my big question was when I was watching these things walking around and how intelligent to becoming super intelligent said well can they procreate that's the question I have and how is that going to happen but is this your way of saying no you're not going to sell shes any of your companies or your investments in no uh just you know if they get too big then I'll have to trim a little bit but no I have no no intention I can't predict
the market I don't even try so everyone comes in says what's the market going to do I have no idea and don't I don't even try we interview analysts and we don't even talk about stocks we interview analyst I want to know who they are I don't care about what they know I want really smart people and I want them to be able to be trained the way we look at things first principal research so just look at things rip it apart in your head put it back together see if it makes sense if you
like the business and think the prospects are good and you're trust the people then invest in I have heard Ron Baron talk about Tesla a lot is well known he's one of the most famous Tesla investors in the world one of the early investors it is his biggest position he manages 50 billion dollar so what he says matters etc etc etc once every couple of months he gets called up to CNBC to talk about his Investments Tesla obviously being the biggest one he talks about Tesla a lot he's bullish a lot all that's fine ending
but we have never ever ever heard him speak like that he basically uses the most important metric in my view to understand who has the best talent in the industry and it basically say says look folks Tesla had 6 million applications for 30,000 jobs and that tells you a lot about the level of quality of talent that this company is recruiting and if you have the best talent you're going to be unbeatable another thing he says is look the stock price is flat if you go back all the way to November of 2021 the stock
price was $400 it is currently $340 so over the past three years the stock has actually lost some percentages however if you look at the business the business is getting better so if the business is getting better but the stock price is getting cheaper it is a no-brainer and I couldn't agree more I'm going to show you the numbers to prove what he's saying is absolutely on point over the past three years in which the stock went from 400 to 340 the revenue has increased by 100% net income has increased by 265 per debt has
decreased by 10% cash has increased by 109% and the institutional shareholding went from 40 to 50% and on top of it they're basically working on creating a monopoly in full set of driving with no Alternatives no competitors a business with 80% gross margin that's going to take over the world and generate way more Revenue that you have ever seen from Tesa now look Let's Get Serious a flat stock with a great business is a setup for explosion in fact the last time we have seen this was Tesla Tesla was doing great on the business side
on the fundamental side but the stock was flat for a long time until it exploded out the stratosphere and all of a sudden people were surprised oh my God God I wish I could have caught it in time here you go you now have a second opportunity of course this ain't Financial advice I'm not telling you to buy Tesla stock I don't know what's going to happen I'm just sharing you my opinion which might be wrong might be inacurate might be the ramblings of a Madman but my opinion is that this is the second cycle
in which Tesla remains flat for years and yet the business is getting exponentially better we haven't even said a word about the energy business that's going out of control we haven't said a word about robotics about robot taxi we just mentioned FSD alone and that in itself is probably a three to four trillion doll Business Without Even saying anything about the other stuff Tesla is doing and that's exactly what Ron Baron is saying he says look folks don't get caught up in the automotive business the margins this car that car 2024 vehicle sales is B
in Russian it's it's meaningless this is not the future of the company the company is a software company not a vehicle producer they're not going to compete with the Chinese of the next 10 years on who can make cheaper cars they're going to generate a monopoly and full driving that's going to sell at about 80% gross margin and it's going to become an industry standard all vehicles will have it like power windows and the only producer of it is going to be tested because there's nobody else that's going to be a huge business way bigger
than producing vehicles and for those of you who think that wayo can compete weo cannot compete the amount of gear you have to load up on the vehicle to use weo and the pre-ms and all the stuff Tesla can do it with a few vehicle installed cameras that's it every OEM would have FSD when it's going to become standard and Tesla is the only shop in town and yes Ron Baron acknowledges that the stock is expensive obviously you look at the forward PE and your eyes pop out of their sockets like it's the Mask movie
with Jim Carrey I get it I get it the stock is expensive but all great stocks were always expensive always Microsoft 10 years ago was $40 then it doubled in price every two or three years 40 to 80 80 to 160 160 to 320 now to 400 every time it doubled people were saying it is expensive great generational stocks that are Market leaders doubl in price every few years and then the Skeptics keep shouting from the sidelines that the stock is just too expensive missing out on all this great growth Tesla is no different than
the index the S&P 500 is again oh my God it's way too expensive so many reasons to sell oh yeah it's frothy it's overbought whatever the S&P 500 over the past 15 years with all this craziness that we've seen in the world over the past 15 years wars pandemics collapses 700% at the end of the day this always going to be reasons to sell the stock there's always going to be reasons to sell S&P 500 ignore the short-term BS that is what Ron Baron is saying focus on the future is Tesla the next big thing
for the automotive industry for the energy business for the robotics business if you think the answer is no that they're not going to lead robotics AI FSD and all this stuff in that case do not buy if you think that they are why would you not buy that kind of company for $1 trillion when you know it's going to be three five 6 10 2030 like El says in 10 years why not so the analysis isn't if Tesla is cheap or expensive as far as forward PE the analysis is do you think this is the
next best thing to slice bread and if it is then the trillion dollars today as long as you stay patient and you stay for the next 10 15 years it's not a huge problem generationally great companies will always be expensive and Peter Lynch said this not me it's never a bad time to buy a good company and Ron Baron is not the only one who's saying these things Tom Lee just launched his own ETF and by the way his biggest position in that ETF is Tesla much like Ron Barons and he was also on CNBC
saying look folks this company is still massively undervalued our biggest position is Tesla because the biggest amount of upside for the next 10 years isn't Tesla it's trading at $1 trillion doll but it has all these massive projects energy robotics FSD robot taxing on top of the other stuff that we haven't even talked about yet AGI a lot of stuff that El is going to roll out over the next 10 years that people just misunderstand and on top of it actually Tom Le added another layer to this Tesla analysis which Ron Baron didn't talk about
and that is the fact that this new Administration that's taking office it's going to expedite it's going to accelerate Tesla's ability to roll out new technologies a lot faster than would have happened under the previous administration now look I've talked about all of this back in July I said look folks this stock is heading to 400 whether you like it whether you not it's currently at 250 you still have time it's going to go to 400 a lot sooner than you think and now I'm here again saying the same thing it is not too late
the stock may be 350 but this is just the beginning this is just the start for Tesla and this is your opportunity to enjoy the fruits of this company the way you do it is not to speculate not to buy and sell try to guess the bottom at the top not to be a short-term Speculator on the stock because if you look at the history of Tesla of the past few years it has gotten very good at punishing short-term Traders and excellent at rewarding long-term patient investors name one long-term Tesla investor that has been investing
in the company for the past five 6 Seven 8 10 years and has not made an obscene amount of money name one you can't because long-term investors that didn't give a hoot about the short-term price action of the stock we're always rewarded about the stock why because the best friend of a great business which Tesla is is time in the stock market and the worst enemy of a horrible company again is time in the stock market that is why the stock market over time will expose which is and which is legit and I believe that
Tesla is legit and that is the reason I've been talking about Tesla as well as other companies like paler since 2020 I like to invest in generationally incredible companies that are going to dominate their industry for decades to come and it's not easy to find these sort of companies but it is possible if you do the work if you want to get better at this if you want to be able to analyze stocks without emotions basically just look at the stock look at the business make a fundamental judgment become I'm a great long-term investor not
a Trader join our Academy on patreon patreon.com Nash we have over 7,000 members they're there because they're getting better at investing not trading not speculating I don't do stock recommendations I teach you how to build generational wealth that's going to change your life join us today try it out 30 days money back guarantee if you're not happy with the economy every single time no problem at all I'll see you next one peace
