Watch CNBC's full interview with billionaire investor Ron Baron

Ron Baron, chairman and CEO of Baron Capital, joins "Squawk Box" to discuss his thoughts on Tesla, the various wealth tax policies proposed by Democratic presidential candidates, his top market bets and more.

Billionaire investor Ron Baron believes Tesla has the potential to hit “at least” $1 trillion in revenue in 10 years and continue to grow from there.

“It’s nowhere near ended at that point and time,” he said Tuesday morning on “Squawk Box.” “There’s a lot of growth opportunities from that point going forward.”

Baron, whose eponymous investment firm holds nearly 1.63 million Tesla shares, said Baron Capital will not sell a single share of company. Tesla’s recent run, he said, is “just the beginning” as he believes the company “could be one of the largest companies in the whole world.”

Tesla’s stock has climbed nearly 220% in the past six months, including roughly 86.5% this year. The company’s market cap is now more than $140 billion -- nearly triple that of General Motors but below Toyota Motor at roughly $227 billion.

The stock closed up 19.9% on Monday at a record high $780 per share. Shares were up more than 15% in premarket trading Tuesday to about $900 per share.

Craig Irwin, senior research analyst at Roth Capital, on Tuesday said at some point “reality is going to set-in” for Tesla, which is why he has a sell rating for the company and a price target of $350.

“I can’t believe this freaking stock. It’s insane,” Irwin said separately on “Squawk Box.” “It’s fear of missing out.”

Irwin said Tesla is “a good company” with “sound” financials, however he argued that traditional automakers will eventually catch up to the California company.

“This is a company that will see decelerating sales,” Irwin said.

Despite the volatility of the shares and “some self-inflicted wounds” by Tesla CEO Elon Musk, Baron on Tuesday said his faith in the company “was never shaken.” He said, if it were solely up to him, his firm would buy more shares of the company.

Even if Tesla’s stock hits $900 or more a share, Baron said he would not want the stock to split: “I don’t think that it’s a great idea to split stocks.”

Baron said he was OK investing in Tesla and Musk even if he didn’t make money because what he is doing well for the world. He also saw no downside because Tesla could also be bought.

As of Monday’s close, Baron’s Tesla stake was worth $1.3 billion. He said he accumulated the Tesla shares at an average cost of $219 each.

Investors betting against Tesla’s stock have lost more than $8 billion since the beginning of the year, according to data from S3 Partners, including nearly $2.5 billion in losses on Monday’s surge alone.

In 2018, Baron made headlines by saying Tesla could generate $1 trillion in revenue by 2030. Tesla’s revenue was $21.5 billion in 2018, up from $11.8 billion a year earlier. It reported revenue last week of $24.6 billion in 2019.



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[bbdog]

My father put me in Ron's Baron Partners Fund when i was a child which currently has 13% holding in Tesla. The fund was up 46% last year and 18% YTD. I sleep well knowing Ron is managing my money!

[Vivra_Verra____]

Love this man. He has always know what he was talking about, especially on Tesla. Listen to people like him, a real investor, not some random analyst.

[MT-ncxj]

Baron is one of a few big-fund managers who gets it. No wonder why people call him a legend.

[AGL]

Why didn't I listen to Ron when he said he's buying TSLA years ago? DAMN!

[stephensmith]

I can't believe how dense these cnbc analysts are!! They are sitting there thinking that they are smarter than Ron Baron. How do these people get their jobs??? I only have 4 shares of Telsa, but Mr. Baron has convinced me to hold on to them.

[shawnl]

Sell? not a share. This guy is a real investor not trader

[Sean-lzzz]

She asked twice, “are you selling”. NO, he’s not selling!! He wants to buy more!

[vmfan]

It's always a pleasure listening to Ron. So much knowledge.

[sagarmeena]

I invested in TSLA when Ron recommended in 2014...thanks for the recommendation Ron

[chrissalley]

Smart guy. I'm long on Tesla too. It will easily be a couple of thousand dollars per share 10 years from now.

[AlexSzymk]

28:30 best part of interview from both sides
they make good points even though they are adding emotion to investing

[TWWIW]

CNBC just loves to interject negativity and bearish questions... They hate to see this company do well since they talked trash about it for years... questioning every Tesla bull they bring to the show.

[johnmacri]

This guy is brilliant. Absolutely brilliant. He holds long term the only way to make real money

[ant]

Do "you understand the question" says the person who is a part time a guy up multiple times after extensive insulting

[nicholasleonardo]

Best interview I've ever seen on CNBC

[urthpainter]

his excitement and energy makes investment talk interesting. probably also helps that he discusses facts, with logic to an end

[sunnyp]

4:23 no hesitation- he's not selling a single share.

[natron]

I believe in tsla as far as passenger vehicles. Semi truck replacements are just not a possibility with current batteries. I also still don't see how people are going to wait 20 mins to recharge. If you had to wait 20 minutes at a gas station every time you wanted gas you would flip out.

[leverageearnings]

People know the price of everything but the value of nothing

[soulmate]

Can someone please ask Elon Musk to smoke weed in public like he did on Joe Rogan podcast. I need Tesla stock to drop to get in. Lol