Long-term investor Ron Baron said on Tuesday that he thinks Tesla Motors (NASDAQ: TSLA) could be one of the largest companies around the world by the next 10 to 20 years, according to CNBC News.
"I think this could be one of the largest companies in the United States and the whole world," Baron said in CNBC’s Squawk Box.
The billionaire also said he could be holding shares of Tesla for the next 10 to 20 years and expect to make a return of $6 or $7 billion.
Baron had collected about a $300 million stake in Tesla over the past three years. The average cost for collecting these shares is $210 per share. Tesla stock closed at $220 per share on Monday. "So we've made very little so far. But often times it takes us a very long time to [make money]." Baron said.
Baron thinks that the electric cars maker is still a high growth company. "They're going to be $20 billion in sales next year, $20 billion. This year, they're doing $8 or $9 billion. Last year they did $5 or $6 [billion]."
Baron, Chairman and CEO of Baron Capital, manages roughly $21 billion in assets. He believes stocks are cheap now because people are still afraid of putting money in the stock market after financial crisis.
"Everyone is afraid because of what happened in 2008 and 2009. They can remember that very clearly," Baron told CNBC.
Tesla shares rose 4.8 percent to $231.27 at 12:06 p.m. in New York after the news.