He told CNBC that Baron Capital has almost 6 million Tesla shares with a cost basis of $42.88 each.
Palo Alto, Cal.-based Tesla traded at $1,040, up 0.2% after hours on Wednesday. At that level, Baron’s holding is worth about $6.3 billion. Baron Capital has $58.9 billion of assets under management.
Tesla stock has soared 39% in the last month, and its market capitalization now totals $1.05 trillion.
Baron said the firm sold 1.8 million Tesla shares in March to “mitigate risk” and 41,000 shares this month. But he’s still quite bullish. Tesla CEO Elon Musk is a “brilliant guy,” Baron told CNBC.
“There would not be electric cars were it not for Elon Musk, in fact you probably wouldn’t be into space the way you are right now were it not for Elon Musk,” he said. “The two most popular companies for engineers when they graduate to work for are ...Tesla and SpaceX.”
Musk’s health represents Tesla’s biggest risk, Baron said. “He sleeps five hours a day, and he works 19 hours a day.” Fortunately, Musk is healthy now, Baron said.
On Tuesday, Wedbush analysts Dan Ives and John Katsingris said Tesla stock could reach $1,500 if it ramps up production to solve the "high-class problem" of demand outweighing supply. They have a base-case price target of $1,100 and an outperform rating for Tesla.